Cedi’s Appreciation: Thank you Akufo-Addo/Bawumia for working hard – Minority
The minority in Parliament, led by Dr. Mohammed Amin Adam, who is also the former finance minister, has praised the previous NPP government for building a strong economy that helped stabilize the Ghana cedi.
Dr. Amin Adam said President Mahama recently admitted that the cedi is doing well partly because Ghana has $10.6 billion in foreign reserves. According to him, this shows that the current NDC government is enjoying the benefits of the work done by the NPP, not because of any new policies they have introduced.
He added that of the $10.6 billion, the NPP left behind a large part—$8.98 billion—when they left office.
Dr. Amin Adam
Dr. Amin Adam also mentioned that the current government is depending heavily on the GoldBod programme, which is not new. It is simply a continuation of the gold-for-foreign exchange policy that the NPP started under the leadership of Vice President Dr. Mahamudu Bawumia. This policy was meant to use Ghana’s gold to support the cedi and stop it from falling too much.
Under the NPP, Ghana’s gold reserves grew from 8.78 tonnes in May 2023 to 30.53 tonnes by December 2024. This gave the economy a strong backup to protect the cedi.
But the minority also criticised the NDC for not doing enough to build up the country’s reserves since taking over. They said that since January 2025, the government has only added less than one ton of gold and about $1.6 billion to the foreign reserves, even though the economy has had good conditions to grow.
Dr. Amin Adam called on the Bank of Ghana and GoldBod to be open and honest about the country’s real reserves. He raised concerns about possible hidden foreign exchange deals that are not being reported properly.
Even though the cedi is doing better, the Minority is worried that inflation is still high at 21%. This means that prices of goods and services are still rising quickly, and there are deeper problems in the economy that go beyond just the exchange rate.
Dr. Amin Adam said clearly, “We need more than just talk. We must be disciplined in how we manage the economy and be honest with the people.” He urged the government to protect the progress made by following smart policies and continuing with good programmes that work.
Ghanaian cedi has become one of the strongest currencies
In a surprising twist that has caught the attention of many, the Ghana cedi has become one of the strongest currencies in the world. So far this year, it has appreciated by about 16% against the US dollar. This is happening at the same time as Ghana’s inflation rate is going down—falling to 21.2% in April 2025, down from over 40% just last year.
This news has made waves not only here at home but across Africa and beyond.
What This Means for the World
For economists and financial experts around the world, Ghana’s situation is quite interesting. Normally, African currencies don’t perform this well on the global stage. But Ghana is showing that with the right policies and support, African economies can stand strong.
When a currency gets stronger, it affects how a country trades with others. It can make imports (goods we buy from abroad) cheaper, which is good for businesses and consumers. But at the same time, it can make our exports (goods we sell to other countries) more expensive and less attractive to foreign buyers.
Foreign investors are also paying attention. A strong and stable cedi shows them that Ghana is managing its economy well. This makes Ghana more appealing for investment, which could lead to more jobs and development.
Experts Are Watching Closely
Big global financial institutions like Goldman Sachs, JP Morgan, the World Bank, and the IMF are keeping a close eye on Ghana. They are looking at our government’s spending, borrowing levels, and debt to see if this stability can continue in the long run.
These organisations are very interested in what’s happening in countries like Ghana because it helps them understand how safe it is to do business in emerging markets.
What It Means for Africa
Across the continent, many African countries are watching Ghana with interest. Most of the time, we hear stories about African currencies losing value. So, Ghana’s strong cedi is bringing a fresh and hopeful story to the table.
The African Development Bank (AfDB) recently praised Ghana’s efforts, saying that things like cutting down on government spending and tightening monetary policy have helped strengthen the cedi and reduce inflation. However, they also warned that Ghana needs to continue working hard to reform its economy and reduce its dependence on just a few export commodities like gold and cocoa.
The AfDB believes that Ghana could do even better if we take full advantage of opportunities under the African Continental Free Trade Area (AfCFTA), which can help us trade more with other African countries.
U.S. Reactions: Some Impact, But Not Too Much
In the United States, the impact of Ghana’s strong cedi isn’t huge, but it’s still noticeable. A stronger cedi means it’s more expensive to buy goods from the U.S., and Ghana’s exports to the U.S. might become less competitive.
Even though Ghana is not a major trading partner of the U.S., trade between the two countries has been growing. The U.S. exports things like cars, machines, and farm products to Ghana. If the cedi keeps rising, these American goods could become too expensive for Ghanaians.
However, for American companies that are already doing business in Ghana, a strong cedi is good news—it means their customers in Ghana now have more purchasing power.
What’s Happening Here at Home
For Ghanaians, this improvement in the value of the cedi is a big deal. When the cedi is strong, imported goods become cheaper. That means items like fuel, rice, cooking oil, and electronics could cost less.
This drop in prices is one reason why inflation has gone down. In April 2025, the rate stood at 21.2%, which is a big improvement from last year. Businesses that rely on imported materials are also happy because their production costs are going down.
But it’s not good news for everyone. Exporters—especially those selling cocoa, shea butter, or handcrafted goods abroad—may now struggle because their products have become more expensive in foreign markets.
Ghana’s Ministry of Trade and Industry is aware of these challenges. They’re working on policies to help exporters find new markets and remain competitive. This includes tax reliefs and other support to reduce their burden.
The Role of GoldBod
One major reason for the cedi’s rise, according to the government, is the work being done by the newly established Ghana Gold Board, or GoldBod.
The Finance Minister, Dr. Cassiel Ato Forson, said GoldBod has been very important in building Ghana’s gold reserves. It buys gold from small-scale miners, helps formalize the gold sector, and uses the gold to increase our foreign exchange reserves.
He believes that this “well-planned and coordinated policy” is a big reason why the cedi has gone up by 6.7% from January to May 2025.
Dr. Forson also mentioned that Ghana’s better management of its national budget and government spending is helping to build investor confidence.
Opposition Has a Different View
Not everyone agrees with the government’s view. Kennedy Agyapong, a former MP, shared a different opinion. He said that Ghana’s economic situation is also being influenced by global factors, especially policies that were introduced during former U.S. President Donald Trump’s time.
He argued that while Ghana’s efforts matter, we shouldn’t ignore the role that global trade, commodity prices, and U.S. financial policies play in shaping our economy.
A Mix of Local and Global Factors
Economists and think tanks like the Brookings Institution have called for a balanced view. They say both domestic policies—like the GoldBod initiative and fiscal discipline—and external factors—like high gold prices and investor sentiment—are all working together to boost the cedi.
For example, the international price of gold has been rising recently. Since gold is one of Ghana’s biggest exports, that’s bringing in more dollars and strengthening our economy even further.
What the IMF Is Saying
The International Monetary Fund (IMF) has also commented on Ghana’s progress. In their latest report, they said that the cedi is gaining strength because the government is working to cut down its debts and manage the economy properly.
The IMF has supported Ghana with a $3 billion programme to help us stay on track. This includes targets for reducing spending, managing inflation, and fixing parts of the economy that aren’t working well.
Final Thoughts: What Lies Ahead?
There’s no doubt that the appreciation of the cedi is a positive development. It shows that Ghana is capable of managing its economy better and attracting the trust of global investors.
But experts warn that we need to stay focused. If we want this progress to last, we must keep working on key reforms—such as boosting exports, cutting down debt, and strengthening local industries.
It’s also important for the government to be honest and communicate clearly with the public, so that people understand both the gains and the challenges ahead.
All in all, this strong cedi is a hopeful sign for Ghana. But we must remain watchful, strategic, and united if we want to build a stable and prosperous economy for everyone.