Ghanaian Cedi Strengthens, Boosts Economic Outlook

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 th…