For a currency known for its volatility, the Ghana cedi is quietly staging a comeback. Against the odds — and the dollar — the cedi has been holding its ground, even flexing some strength in a climate where any sign of economic stability is headline-worthy.
But beneath the applause and the numbers lies a bigger question: is this a true turning point or just a temporary calm stirred by strategic interventions?
Since December 2024, the local currency has recorded one of its longest stretches of stability in recent years. On some days, it’s even appreciated against the US dollar — a move that seemed far-fetched just months ago.
As of May 5, 2025, most commercial banks were quoting the dollar at GH¢13.98, with forex bureaus selling slightly higher at around GH¢14.40.
According to the Bank of Ghana, the cedi appreciated by 2.76% against the dollar between January and April 2025.
Analysts say this rare show of resilience isn’t a fluke. It’s being driven by deliberate monetary policies, including the Bank of Ghana’s active liquidity support, and the central bank’s Gold Purchase Programme, which has bolstered market confidence and helped curb speculation.
The International Monetary Fund (IMF) has also credited Ghana for a stronger-than-expected reserve buildup. According to the Bank of Ghana’s Economic and Financial Data, gross international reserves reached $9.3 billion at the end of February 2025, surpassing targets set under the IMF’s Extended Credit Facility (ECF).
The IMF’s recent Staff Level Agreement with Ghana has further shored up investor confidence, reinforcing the perception that the economy is finally finding its rhythm.
Even global observers have taken notice.
The World Bank’s April 2025 Africa’s Pulse report noted that the cedi had depreciated by just 4% in the first four months of the year — a solid performance considering past years.
Meanwhile, Forbes ranked the cedi as Africa’s seventh strongest currency by the end of Q1 2025.
On paper, the signs are encouraging. Inflation is slowing, with March 2025 recording a year-on-year rate of 22.4%, down from much higher levels in 2023 and early 2024.
But for many Ghanaians, the bigger question is whether this newfound stability is easing the pressure in their daily lives.
Market prices remain elevated, transport fares are still high, and small businesses continue to grapple with tight profit margins.
Looking ahead, the government is banking on the establishment of the Goldbod; a planned national gold-backed initiative aimed at further strengthening the cedi. The idea is to leverage Ghana’s gold resources to reduce reliance on foreign exchange and enhance reserve buffers.
Meanwhile, the new Governor of the Bank of Ghana, Dr. Johnson Asiama is optimistic. In his first major remarks, he opines that the cedi is an endogenous variable. We must allow it to float but the days of excessive volatility are over.
It’s a bold assertion, one that signals confidence in the policy mix currently in play. But it also comes with a challenge: to ensure that this macroeconomic calm translates into microeconomic comfort.
For now, Ghana’s cedi is riding an unexpected wave of stability. But whether that wave brings lasting economic relief or eventually crashes under pressure – will depend on consistency in policy, fiscal discipline, and how well the ripple effects reach the everyday Ghanaian.
After all, stability on paper must translate into predictability at the market, affordability at the pump, and confidence in the future.
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This article was written by Emmanuel Oppong, Business Journalist at Citi FM and Channel One TV