- The cedi strengthens to GH₵12.00 to the US dollar, its best performance of the year
- The Bank of Ghana’s regulatory measures have reduced speculative pressures
- Bank of Ghana reforms aim to lock in these gains and ease inflation pressures
The local currency, the cedi, continues to strengthen, reaching GH₵12.00 to the US dollar on the forex market, marking its best performance so far this year.
This appreciation reflects growing investor confidence in the economy, driven by strong fiscal consolidation efforts and the Bank of Ghana’s tight monetary policies. According to Citi Business News, as of Wednesday, May 21, the cedi was trading at GH₵12.10 at some forex bureaus.
The British Pound was being sold at GH₵16.85, and the Euro at GH₵14.60.
The cedi’s performance is supported by increased foreign exchange inflows, including higher export earnings, remittances, and funds disbursed under Ghana’s IMF-backed programme. Analysts also highlight the Bank of Ghana’s strengthened regulatory oversight in the forex market, which has reduced speculative pressures and brought market rates closer to fundamental values.
Prof. Godfred Bokpin of the University of Ghana Business School stated, “This progress was intentional, and I believe it is no accident.”
The Bank of Ghana is implementing additional reforms to sustain the cedi’s recent gains.
Governor Dr. Johnson Asiama noted that the currency’s appreciation has helped alleviate “imported inflation pressures and restore public confidence.”
He attributed the cedi’s performance to a mix of factors, including prudent monetary policies, improved market sentiment, and gains in the external sector.
