Cedi’s gain signals economic turnaround — Ato Forson
THE recent appreciation of the Ghana cedi is a “remarkable turnaround” in the country’s economic trajectory, the Minister of Finance, Dr Cassiel Ato Forson, has said.
He hailed the growth as evidence of effective economic management and policy coordination under the Mahama-led administration.
At the inauguration of the 13-member Board of Directors of the Ghana Gold Board last Monday in Accra, Dr Forson revealed that the cedi had appreciated by 16.7 per cent against the US dollar on year-to-date basis – a sharp reversal from the 13.4 per cent 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 synchronised monetary and fiscal interventions, alongside a more favourable global environment.
He explained that tight monetary policy by the Bank of Ghana (BoG), coupled with aggressive liquidity sterilisation and disciplined fiscal management, has been instrumental in restoring market confidence and currency stability.
“Policy synergy has been critical; we are seeing the benefits of well-coordinated measures between the Ministry of Finance and the Bank of Ghana,” he said.
Factors
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 BoG reached a record-high in April 2025, surpassing targets set under the International Monetary Fund (IMF) supported programme ahead of schedule,” he said, giving an assurance that the appreciation was 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; it will redefine how the Ghana cedi behaves and how our foreign exchange buffers are built in the future,” he said.