Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has announced that the country’s currency, the cedi, is no longer depreciating.
Delivering the 2025 Mid-Year Budget Review in Parliament on July 24, 2025, Dr. Forson stated, “Cedi no apicki,” emphasizing the local currency’s stability and appreciation in recent months.
Key Highlights of the Cedi’s Performance
– Appreciation Against Major Currencies: The cedi has appreciated by 46% against the US dollar, 30.3% against the British pound, and 25.6% against the euro as of June 2025.
– Exchange Rate: The cedi, which began the year at around GH¢15 to the US dollar, has strengthened significantly to trade at approximately GH¢10.45 on the interbank market.
– Price Stability: The cedi’s appreciation is already contributing to price stability, with marginal reductions observed in the prices of some imported goods.
Factors Contributing to the Cedi’s Recovery
– Strong Fiscal Consolidation: The government’s efforts to manage its finances effectively have contributed to the cedi’s stability.
– Tight Monetary Policy: The Bank of Ghana’s monetary policies have helped to control inflation and support the cedi’s value.
– Improved External Sector Performance: Increased export inflows, particularly from gold and cocoa, have positively impacted the cedi’s value.
– Renewed Investor Confidence: The successful completion of the fourth review of Ghana’s program with the International Monetary Fund has boosted investor confidence in the country’s economy.
Government’s Commitment
- Dr. Forson assured Ghanaians that the government remains committed to sustaining the gains achieved so far. “We will continue to implement prudent policies to preserve the value of our currency, reduce inflation, and ensure economic stability for all,” he added.
