The Ghana Cedi in the last couple of weeks has made some significant gains against major trading international currencies, especially the United States Dollar. This has brought some respite to businesses that heavily depend on foreign currency for their operations.
The current trend of appreciation began in mid-April, when the exchange rate stood at approximately GHS 15.50 to the U.S. dollar. Since then, the cedi has steadily gained strength, reaching GHS 13.30 by May 7. This upward trajectory has sparked renewed interest and discussion among economists, policymakers, and the general public regarding the underlying drivers of this appreciation and whether it can be sustained in the long term.
Figure 1 below depicts the trend of the cedi performance against the US dollar, British pound and the euro from the beginning of the year to May 7, 2025.
