Cedi’s 16.7% Year-to-Date Gain Signals Economic Turnaround, Says Finance Minister
Finance Minister Dr. Cassiel Ato Forson has described the recent appreciation of the Ghana cedi as a “remarkable turnaround” in the country’s economic trajectory, hailing it as evidence of effective economic management and policy coordination under the Mahama-led administration.
Speaking at the inauguration of the 13-member Board of Directors of the Ghana Gold Board, on May 19, 2025, Dr. Forson revealed that the cedi had appreciated by 16.7% against the US dollar on year-to-date basis – a sharp reversal from the 13.4% depreciation recorded over the same period in 2024.
“The cedi has solidified its position as the standout performer among global currencies,” he stated, attributing the rally to a “robust policy framework” anchored on synchronized monetary and fiscal interventions, alongside a more favourable global environment.
He explained that tight monetary policy by the Bank of Ghana, coupled with aggressive liquidity sterilisation and disciplined fiscal management, has been instrumental in restoring market confidence and currency stability.
“Policy synergy has been critical,” he said. “We are seeing the benefits of well-coordinated measures between the Ministry of Finance and the Bank of Ghana.”
Dr. Forson also acknowledged the vital role of improved foreign exchange inflows, particularly from traditional exports such as gold and cocoa, as well as remittances from the Ghanaian diaspora. He further noted that a weakening US dollar amid global economic uncertainty had contributed to the cedi’s momentum.
“Our foreign exchange reserves at the Bank of Ghana reached a record-high in April 2025, surpassing targets set under the IMF-supported programme ahead of schedule,” he said, assuring that the appreciation is backed by strong fundamentals and not short-term interventions.
Highlighting the impact of recent reforms, the Finance Minister pointed to the Goldbod initiative – a government-backed programme aimed at leveraging Ghana’s gold resources to enhance forex liquidity – as a game-changer.
“The activities of the Goldbod stand to further strengthen this performance,” he remarked. “It will redefine how the Ghana cedi behaves and how our foreign exchange buffers are built in the future.”
Dr. Forson used the opportunity to call for national support for the current administration’s economic reform agenda. “Let us all support President John Dramani Mahama’s economic reset to build an economy anchored on inclusive growth, resilience, and shared prosperity,” he urged.
The cedi’s rebound, if sustained, is expected to ease imported inflation pressures, reduce government’s external debt servicing costs, and provide a boost to investor confidence as the country navigates its economic recovery path under the IMF-backed programme.
