Ghana Cedi Poised for Historic First Annual Gain Against US Dollar

Accra, Ghana — For the first time since the 2007 redenomination, the Ghana cedi is on track to post an annual appreciation against the US dollar, a milestone that economists say signals improving fundamentals and stronger external buffers.

Data from Joy News Research show that the cedi has appreciated by approximately 36% year-to-date, halting a decades-long trend of annual depreciation that averaged 14.9% between 2008 and 2024.

Key factors cited for the turnaround include: strong export inflows from gold and cocoa, interventions by the Bank of Ghana (BoG) in the foreign-exchange market, with interventions since 2022 exceeding US $10 billion and improved fiscal discipline and a debt-to-GDP ratio falling below 50 %.

A stronger cedi could ease inflationary pressure on imports and improve investor confidence in Ghana’s economy. However, analysts caution that sustaining the gain requires continued export strength, stable external conditions and a reduction in dollarization of the economy.

Meanwhile, fresh figures from the Bank of Ghana’s Treasury Bills Auction No. 832 held on Wednesday October 22, show strong investor participation and stable short-term yields. According to the official release, the 56-day BoG bill attracted bids with rates between 20.00% and 20.81% per annum, with a weighted average discount rate of 20.74% and a weighted average interest rate of 21.42%. The total amount sold stood at GH¢ 2.34 billion, reflecting continued confidence in Ghana’s short-term securities market.

Economists interpret the consistent yields and high subscription as a sign that both domestic investors and foreign fund managers view the current monetary stance as credible and inflation-containing.

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