Ghanaian Cedi Strengthens, Boosts Economic Outlook

The Ghanaian cedi has emerged as a standout performer among global currencies, contributing to a decline in inflation to an eight-month low of 22.4% in March 2025. 

According to the Ghana Statistical Service, the cedi's appreciation, particularly breaking the 12.00 key level against the dollar on the interbank market, has helped rein in import costs, easing price pressures on consumers. 

This follows a deliberate monetary policy tightening by the Bank of Ghana, which raised its benchmark interest rate by 100 basis points to 28% to stabilize the economy. 

Traders predict the cedi will continue to strengthen in the coming weeks, potentially outpacing other regional currencies like those of Nigeria, Kenya, and Zambia. 

Finance Minister Mohammed Amin Adam highlighted the cedi’s performance as a sign of growing investor confidence, driven by Ghana’s ongoing economic reforms post its debt restructuring. 

However, challenges remain, as the Abossey Okai Spare Parts Dealers Association noted that recent gains have not yet translated into lower prices for goods, indicating a lag in market adjustments. 

Economic experts emphasize the need for sustained policy interventions to maintain this trajectory, warning that global commodity price fluctuations and domestic demand pressures could still pose risks.

The cedi’s rally is seen as a critical step toward stabilizing Ghana’s economy, which has faced significant hurdles, including a dispute with the African Export-Import Bank over a $768.4 million debt. 

This positive development could bolster Ghana’s negotiations with international creditors and enhance its appeal to foreign investors, fostering long-term economic growth.