Cedi’s appreciation against all major trading currencies hits record high
In a surprising and positive turn of events, the Ghanaian cedi has seen one of its strongest performances ever in recent years, bouncing back with strength against some of the world’s most powerful currencies.
This is a huge change from the past few years, where we’ve seen the cedi lose value sharply, causing prices of imported goods to shoot up and squeezing the pockets of everyday Ghanaians.
But today, things are different.
According to the latest data from the Bank of Ghana (BoG), the cedi has made big gains:
24.1% appreciation against the US dollar
16.2% appreciation against the British Pound
14.1% appreciation against the Euro
This means if you used to buy $1 for around GH₵15 just last year, it now costs about GH₵11.85. Likewise, the Pound is trading at GH₵15.84 and the Euro at GH₵13.34. These numbers are based on the May 2025 Summary of Economic and Financial Data published by the BoG.
Why Is the Cedi Suddenly Gaining Strength?
Government and the Bank of Ghana say the strong performance of the cedi is no accident. It’s the result of a mix of deliberate and coordinated efforts to tighten fiscal spending, build up gold reserves, and apply strong economic management policies.
Here’s a breakdown of the key reasons:
Fiscal Tightening
The government has cut down on unnecessary spending and is working hard to live within its means. This helps reduce borrowing, which in turn builds confidence in the economy.
Improved Gold Reserves
With more gold in reserves, the central bank has a stronger financial backbone. This boosts investor confidence and strengthens the cedi against foreign currencies.
Prudent Monetary Policy
The Bank of Ghana has also played its part by keeping inflation in check and making smart policy moves to stabilize the economy.
According to Dr. Johnson Asiama, the Governor of the Bank of Ghana, the appreciation is the result of “a combination of factors, including prudent monetary policy, improved market sentiment, and external sector gains.”
What Does This Mean for Ordinary Ghanaians?
The strengthening of the cedi is good news for consumers and businesses, especially those who rely on imported goods such as fuel, vehicles, and food items.
If the cedi stays strong, it could lead to cheaper prices for fuel and imported goods, which would help reduce the general cost of living. Already, importers in the automobile and retail sectors are optimistic that this trend could bring down the prices of their goods.
However, experts are advising Ghanaians not to get too excited just yet.
Economists say that while the recent gains are great, it’s important to stay cautiously optimistic. This is because the cedi’s strength depends on continued discipline in how the government manages money and how inflation is controlled. Without these, the gains could easily be reversed.
A Call for Change: Import Duties Under Scrutiny
With the cedi gaining ground, several industry players are calling on the government to revisit the current import duty regime. Many businesses feel that the high import taxes are still a major burden, even with a stronger currency.
They believe that if import duties are reduced, especially now that the cedi is strong, it could lead to:
Lower prices for consumers
Increased trade
More competitive pricing for local businesses
This, they argue, would help stimulate the economy and support private sector recovery after a tough few years.
Debt Figures Show Mixed Results
Despite the good news about the cedi, Ghana’s total public debt still remains high.
As of March 2025, the total debt stock is $49.5 billion, slightly up from $49.4 billion in February 2025. This is even though the cedi has appreciated strongly against the dollar, which typically helps lower the value of dollar-denominated debt.
In Ghana cedi terms, the debt stands at around GH₵769.4 billion, which is about 55% of the country’s Gross Domestic Product (GDP).
Let’s break it down:
External debt (money Ghana owes to foreign lenders) went up slightly.
Domestic debt (money borrowed within Ghana) actually decreased from GH₵328 billion to GH₵326.9 billion.
This shows that while the government is managing domestic borrowing better, the external debt is still a challenge that needs careful monitoring.
The Road Ahead: Can the Cedi Hold Strong?
The big question on everyone’s mind is: Can the cedi continue to perform this well?
Economists say it is possible—but only if the government continues to:
Stick to strict spending plans
Keep inflation low
Support local production and exports
Strengthen investor confidence
Without these efforts, the current success could be short-lived. That’s why many are urging the government not to relax just because the cedi is doing well right now.
Also, there’s pressure on the government to channel these economic wins into job creation and private sector growth, especially for the youth and small businesses who need real opportunities, not just macroeconomic statistics.
Conclusion: A Reason to Smile, But Stay Alert
In all, Ghanaians have real reasons to celebrate the strength of the cedi. For once, we are seeing the local currency perform well, making imports cheaper and boosting business confidence.
But as experts rightly point out, this is not the time to be complacent. The same hard work and discipline that brought this positive change must be maintained and even improved to make sure the gains last.
At the end of the day, a strong currency is only truly meaningful when ordinary Ghanaians feel the impact in their pockets—through lower prices, better jobs, and improved living conditions.