Author: Peter Martey Agbeko, APR
Just a few months ago, it cost nearly GH₵17 to buy a single US dollar—a figure that triggered anxiety across the country. Today, the Ghanaian cedi is staging a remarkable rebound, trading just above GH₵12 to the dollar. For many Ghanaians, this is not just an economic statistic—it’s a welcome relief that’s being felt in wallets, market stalls, and business transactions.
From Accra’s Kantamanto market to the port city of Tema, traders and importers are cautiously optimistic. “We were scared it would hit 20,” says Kwaku, a clothing importer. “But now, I can plan better. Prices are not jumping every week like before.”
What’s Driving the Cedi’s Recovery?
Several key factors—both internal and external—have contributed to this turnaround. The appreciation of the cedi is not an accident; it is the result of coordinated efforts by the government, the Bank of Ghana, and improved confidence in the economy.
1. Timely IMF Support and Policy Discipline
The disbursement of successive tranches of the $3 billion IMF Extended Credit Facility has helped shore up Ghana’s foreign reserves, boosting market confidence. The IMF program has also imposed fiscal discipline, pushing government to cut back on excess spending and focus on revenue mobilization and debt sustainability.
2. Improved Forex Inflows
The country has seen a marked increase in foreign exchange inflows from cocoa syndicated loans, mineral exports, and resilient remittances from Ghanaians abroad. These inflows have helped reduce the pressure on demand for the dollar.
3. Strong Performance of Key Exports
High global prices for gold and a recent uptick in cocoa earnings have improved Ghana’s balance of payments position. This has enabled the Bank of Ghana to build up reserves and intervene in the forex market when necessary.
4. Tighter Monetary Policy
The Bank of Ghana has maintained a tight monetary policy stance, with interest rates remaining high to tame inflation. While high borrowing costs are not ideal for businesses, the policy has been effective in anchoring inflation expectations and making the cedi more attractive to investors.
5. Growing Investor Confidence
The government’s clear communication on fiscal consolidation and the ongoing domestic debt exchange program have reassured the investor community. As a result, both local and foreign investors are beginning to return to the cedi and cedi-denominated assets.
From Crisis to Cautious Confidence
This recovery story is significant because it marks a shift from despair to cautious optimism. Earlier in the year, the cedi was one of Africa’s worst-performing currencies. Today, it is among the best performers on the continent.
However, experts warn that this is not the time to relax. The structural vulnerabilities that made the cedi so fragile in the past—heavy import dependence, a narrow export base, and large external debt obligations—have not disappeared overnight.
“This is a positive trend, but we must consolidate the gains,” says a senior economist at a leading financial institution. “What we need now is consistent, responsible policy over the long term—not just quick fixes.”
How Ghanaians Are Responding
For ordinary citizens, the cedi’s recovery brings some breathing room. Importers can plan better, businesses can restock with less panic, and consumers are spared the worst of the inflationary spiral. However, many are still waiting for these macroeconomic improvements to translate into consistently lower prices on the ground.
Still, there is growing pride in the idea that Ghana, with determination and discipline, can steady its economy. It’s not just about foreign aid or loans—it’s about sound governance, smarter trade policies, and belief in our own currency.
As the cedi stabilises, it sends a powerful message: with the right leadership, the right policies, and the right mindset, Ghana can regain control of its economic destiny.
