Cedi’s Recent Gains Attributed to Gold for Reserves Programme and External Factors
CEO of Dalex Finance, Joe Jackson, has credited the recent appreciation of the Ghana cedi to a mix of strategic domestic initiatives and favourable global developments.
Speaking on TV3’s KeyPoints programme on May 17, Mr Jackson highlighted the government’s Gold for Reserves initiative as a major internal factor supporting the cedi’s strength. According to him, the programme—despite concerns about corruption—has succeeded in reducing Ghana’s dependence on foreign exchange for fuel imports, thereby easing pressure on the local currency.
“I applauded the Gold Reserve/Gold4Oil programme. The Gold for Reserves, however corrupt, delivered on its objective,” Mr Jackson stated, adding that if the Bank of Ghana remains committed to the programme, the cedi’s appreciation will likely be sustained. “Goldbod will deliver if our Governor keeps his commitment to stay with the Gold for Reserves programme,” he remarked.
On external factors, the Financial Analyst cited what he termed the “Trump tariff fall” as a pivotal global development impacting the cedi-dollar exchange rate. He explained that U.S. President Donald Trump’s tariff-driven economic policies have contributed to the depreciation of the dollar against major global currencies, including the cedi.
“The external factors have been good to Ghana. That the dollar is depreciating against our cedi is not news. President Trump wants oil prices to drop to as low as $40 per barrel, and that has led to a decline in the cost of Ghana’s biggest import—fuel,” he noted. “We import over $400 million worth of fuel a month. If prices fall, the pressure on the cedi reduces,” he added.
Mr Jackson further pointed to a recent downgrade of the U.S. credit rating by international rating agencies, noting that the alignment of these global economic indicators has been advantageous for Ghana. “Oil prices have been falling and this week fuel prices will reduce at the pumps,” he said.
Also contributing to the discussion, Member of Parliament for South Dayi, Rockson-Nelson Dafeamekpor, commended Finance Minister Dr Cassiel Ato Forson and Bank of Ghana Governor Dr Maxwell Opoku-Afari for their efforts in stabilising the cedi.
“I think that the Finance Minister and the Governor also deserve some credit for the initiatives they have introduced to shore up the value of the cedi, despite the external factors,” he stated.
The cedi has seen relative stability in recent weeks, buoyed by improved FX inflows, falling fuel prices, and the continued implementation of the Gold for reserves policy.
