Market analysts are emphasizing the importance of maintaining high gold prices and tightening government spending as crucial strategies to sustain the Ghanaian cedi’s recent gains against the US dollar.
Speaking on Channel One TV’s current affairs programme The Point of View, hosted by Bernard Avle, economist Dr. Theo Acheampong warned that the recent appreciation of the cedi could be short-lived without disciplined and consistent policy action.
Dr. Acheampong expressed cautious optimism, noting that with the right measures in place, the cedi could continue its upward trajectory for the rest of the year—boosting investor confidence and supporting broader economic growth.
“One of the key factors is the continued strength of gold prices. If gold remains high for the rest of the year, I can confidently say the cedi will continue to gain against the dollar,” he said. “On the fiscal side, we’re approaching the mid-year review in July. If we see improved fiscal numbers and stronger commitments to curbing expenditure—particularly in line with the budget presented in March—those positive signals will continue to feed into the foreign exchange market.”
Meanwhile, Adjei Boateng, Chief Investment Officer at Black Stars Advisors, stressed that currency stability—not just strength—matters most for businesses and investors.
“Stability over a prolonged period is perhaps more valuable than short-term appreciation, because it brings predictability. That allows businesses and individuals to plan with greater confidence,” Boateng explained. “The Governor of the Bank of Ghana also highlighted this recently—his preference is to stabilize the cedi over the next three to five years. That kind of environment allows for better economic planning at all levels.”
He added that the current momentum also presents an opportunity to ease Ghana’s external debt burden.
“If we’ve built up reserves, perhaps we could channel some of that into reducing external debt. That would help lower our interest payments and free up fiscal space for other priorities,” Boateng noted.