The Ghanaian cedi is making a serious comeback against the dollar, bringing smiles to many Ghanaians who have been worried about the rising cost of living. For the first time in a long while, the cedi has appreciated sharply against major foreign currencies, especially the US dollar.

As of Friday, May 23, 2025, trading on the interbank market closed with the cedi exchanging at about GH¢10.50 to $1, according to figures from Bloomberg. This is a massive improvement compared to just a few weeks ago when the cedi was hovering around GH¢15.31 to $1.

Even the Bank of Ghana’s official interbank mid-rate for that day showed a stronger position—GH¢10.95 per dollar. That’s proof that the currency is truly gaining ground.

How Did We Get Here? What Changed?

According to financial experts and the Governor of the Bank of Ghana, Dr. Johnson Asiama, the cedi’s new strength didn’t happen by accident. It is the result of several strong measures taken by the Bank of Ghana and a boost in investor confidence.

Speaking at a press conference on Friday, Dr. Asiama explained some of the main reasons behind this welcome development:

Tighter Monetary Policy:

The Bank of Ghana has kept its monetary policy rate at 28%. This means they are not rushing to reduce interest rates just yet, even though inflation is beginning to drop. This move helps control the money supply, reduce demand for foreign currency, and strengthen the cedi.

More Foreign Exchange Inflows:

Ghana has received more US dollars recently, from things like cocoa and gold exports, remittances from abroad, and support from international partners like the IMF and World Bank.

Stronger Regulation to Reduce Speculation:

The BoG has also implemented rules to stop people and companies from buying dollars just to make a profit later. This reduces unnecessary demand and helps stabilise the forex market.

Imported Inflation Is Slowing Down:

Because the cedi is now stronger, imported goods like fuel, electronics, and food items are likely to become cheaper or more stable in price. This is helping to lower inflation from the high levels Ghanaians have endured in recent years.

Why Does This Matter to Ordinary Ghanaians?

When the cedi falls, everything becomes expensive—from foodstuff at the market to spare parts, school fees, fuel, and rent. Traders and importers usually pass on the higher cost to consumers. But now that the cedi is appreciating:

Prices of goods and services may slow down or even drop slightly.

Fuel prices might stabilise or reduce.

Traders who import goods can breathe a sigh of relief.

Transport fares, which were already biting, may not go up again soon.

What Is the Bank of Ghana Saying?

Dr. Asiama was clear that even though this improvement is good news, the BoG will not relax just yet.

“We are committed to making sure that inflation stays under control and that the gains we are seeing with the cedi are sustained. We will continue building our foreign exchange reserves and supporting the economy in every way we can,” he said.

He added that the central bank is still cautious, because things could easily turn around if not managed well. For instance, any global shocks, political instability, or major increases in fuel prices could reverse these gains.

A Long Journey to Recovery

Let’s not forget, just a few months ago, the cedi was one of the worst-performing currencies in Africa. At one point, it had fallen so badly that traders were using calculators daily just to keep up with new prices.

Ghana’s inflation had also gone through the roof, crossing 57% in 2023, which caused serious hardship for many homes.

But thanks to:

Tighter financial discipline

Help from the IMF programme

Reforms to public spending

A shift in investor confidence

…the country seems to be turning a corner.

What Do the Experts Think?

Economists have hailed the move but are urging caution.

Dr. Patrick Abor, a financial analyst and lecturer at the University of Ghana Business School, told reporters:

“This is good progress, but we must not be complacent. Ghana needs to build long-term strategies that will make our currency strong for good—not just temporary relief. We must produce more locally, export more, and borrow less.”

Is This the Time to Celebrate?

Well, yes and no.

Yes, because:

The pain is reducing.

Prices are not climbing as fast.

Ghana is slowly getting back investor trust.

No, because:

We are not out of the woods yet.

Inflation is still relatively high.

Unemployment remains a big issue.

This is a moment to say, “We are getting better,” but also to keep working hard so we don’t fall back.

Voices from the Streets

At the Makola Market in Accra, some traders shared their thoughts.

Akosua Mensah, a fabric seller, said:

“Eii! The way the dollar was running, we couldn’t breathe. Every week, new prices. But now, things are calming down. I pray it continues. We need peace of pocket.”

Kwame Ampadu, a mechanic in Kumasi, added:

“If the cedi can remain strong, maybe fuel won’t go up again. Because when fuel goes up, transport goes up, everything goes up.”

What’s Next?

The next few months will be key. The Bank of Ghana, the Ministry of Finance, and all economic players need to:

Stay disciplined with spending

Avoid reckless borrowing

Support local businesses

Invest in agriculture and manufacturing

The government must also communicate clearly so that the average Ghanaian understands what’s happening with the economy and what to expect.

Final Word

For now, Ghanaians have some relief. The cedi is bouncing back, and the cost of living could start easing. But we must all stay alert—this is a recovery, not a miracle.

Let’s hope that this trend continues, and Ghana finally builds the strong economy we’ve all been praying for.