President John Dramani Mahama has attributed the recent appreciation of the Ghanaian cedi to a significant increase in the country’s gross international reserves, which have risen from $8.9 billion in December 2024 to $10.6 billion by April 2025.
This boost in reserves has been instrumental in stabilizing the local currency and restoring investor confidence.
Speaking at the Ghana–EU Business Forum in Accra on May 20, President Mahama emphasized that the strengthened reserves reflect growing investor confidence and enhanced external financial buffers.
He noted that fiscal consolidation efforts are underway, with the fiscal deficit on a commitment basis reduced from 7.5% of GDP in 2024 to 6.4% in the first half of 2025.
The government aims to further decrease the deficit to 3.1% by the end of the year through expenditure rationalization, improved domestic revenue mobilization, and strong anti-corruption measures.
The cedi’s appreciation has also contributed to easing inflationary pressures. As of April 2025, Ghana’s inflation rate declined to 21.2% from 22.4% in March, marking the fourth consecutive month of decline.
This trend has been supported by the cedi’s nearly 16% appreciation against the U.S. dollar since early April, making it one of the world’s best-performing currencies during that period.
President Mahama assured both local and international investors of his administration’s commitment to fostering a secure and enabling environment for investment.
He highlighted ongoing efforts to restore confidence in public procurement systems, enforce contract sanctity, and protect investor rights under both domestic and international legal frameworks.
While the cedi’s recent performance has been commendable, some analysts caution that sustaining this momentum will require continued structural reforms and prudent economic management.
The Centre for Policy Scrutiny, for instance, has emphasized the need for deeper economic reforms to ensure the long-term stability of the cedi.
Overall, the combination of increased reserves, fiscal consolidation, and policy reforms has positioned Ghana on a path toward economic recovery and stability, with the cedi’s resurgence serving as a key indicator of these positive developments.
Source: Newstitbits.com
