The sustained appreciation of the Ghanaian cedi against major international currencies is being driven by a combination of strong export performance, rising remittances, and coordinated fiscal and monetary policies, according to Nelson Cudjoe Kuagbedzi, Head of Finance at UMB Capital.
Speaking on the Citi Breakfast Show on Monday, June 2, 2025, Kuagbedzi pointed to key economic fundamentals that have contributed to the cedi’s continued stability and significant gains in the forex market.
Between January and late May 2025, the cedi appreciated from approximately GHS 15.00 to GHS 10.20 per USD—representing a cumulative gain of about 32%.
Explaining the reasons behind the strong performance, Kuagbedzi said:
“The appreciation of the cedi is a result of the performance of our traditional exports. Gold has been doing well, cocoa has also been doing well. Our non-traditional exports have also seen strong performance.”
He further noted that increased remittance inflows have boosted Ghana’s international reserves.
“As of the end of April, our growth in international reserves was about $10.7 billion, which represents about 4.7 months of import cover,” he stated.
Addressing the dynamics of the foreign exchange market, Kuagbedzi said:
“There is always the issue of demand and supply. As it stands now, the Bank of Ghana has enough forex to meet the demand of those who actually need it, especially those engaged in international transactions.”
He also praised the synergy between the Bank of Ghana and the Ministry of Finance for creating a stable macroeconomic environment.
“The BoG’s own monetary policy, in addition to fiscal strategies by the Ministry of Finance, is also playing the magic,” Kuagbedzi added.
Exchange Rate as of Monday, June 2, 2025
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