The Ghanaian cedi’s impressive 16.7% appreciation between January and May 2025 can be attributed to the strategic economic policies implemented by the Mahama-led administration, according to Sammy Gyamfi, Acting CEO of the Ghana Gold Board.
In a write up on the cedi’s strengthening, Mr. Gyamfi highlighted the key role played by the Bank of Ghana’s monetary policy decisions, particularly the 1% hike in the Monetary Policy Rate to 28% in March 2025.
“These measures, combined with a weakening US dollar due to global uncertainties, have collectively strengthened the cedi,” he said.
Sammy Gyamfi also credited the fiscal discipline and prudent public finance management under the Ministry of Finance for renewing investor confidence.
The surge in gold exports, driven by the Ghana Gold Board and the Precious Minerals Marketing Company, has significantly boosted foreign reserves, alongside increased inflows from cocoa and remittances.
According to Sammy Gyamfi, the policies demonstrate a “deliberate and disciplined” approach to economic management, aimed at achieving long-term stability.
“The Bank of Ghana’s decision…along with aggressive liquidity sterilization through open market operations, played a key role in stabilizing the currency,” he added.
Mr. Gyamfi’s comments underscore the impact of well-crafted economic policies on the country’s financial stability.
Below is Sammy Gyamfi’s full statement on the Cedi’s impressive performance:
The significant appreciation of the Ghana Cedi we are currently witnessing (16.7% from January 2025 to date) has been occasioned by deliberate policy interventions by the NDC/Mahama government which include:
1. Stringent monetary policy stance, complemented by aggressive liquidity sterilization by the Bank of Ghana. This was partly achieved through the strategic policy decision by the Bank of Ghana in March 2025, to increase the Monetary Policy Rate by 100 basis points from 27% to 28% and the Open Market operations of the Bank.
2. Fiscal consolidation by the Ministry of Finance and the restoration of investor confidence in the Ghanaian economy anchored on fiscal discipline and prudent public finance management.
3. Robust forex inflows and accelerated foreign reserve accumulation through unprecedented gold purchases and exports by the PMMC/GoldBod. As well as enhanced foreign exchange inflows from cocoa, remittances among others.
These policy interventions alongside a favorable global context, marked by the weakening of the US dollar amid global uncertainties, have significantly driven the strength of the Ghana cedi.
SAMMY GYAMFI ESQ.