Ghana’s national currency, the cedi, has emerged as the world’s best-performing currency for the month of April 2025, according to a new Bloomberg report. The cedi has appreciated by nearly 16% against the US dollar, marking a significant turnaround in Ghana’s economic outlook.
This strong performance is credited with helping to ease inflationary pressures across the country. As of May 8, 2025, the cedi is trading at GH₵13.4 per dollar, boosting consumer confidence and making imported goods more affordable.
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Inflation Eases in Ghana
Recent figures released by Government Statistician Alhassan Iddrisu show a drop in consumer price inflation to 21.2% in April, down from 22.4% in March. Monthly inflation also slowed to 0.8%, thanks in large part to falling import costs driven by the cedi’s appreciation.
- Food inflation dropped to 25% from 26.5%
- Non-food inflation fell to 17.9% from 18.7%
Mr. Iddrisu confirmed that the stronger cedi has played a central role in reducing inflation by lowering the cost of imports.
Central Bank Holds Back on Rate Cuts
Despite the cedi’s gains, the Bank of Ghana is expected to hold off on cutting interest rates anytime soon. The central bank had surprised markets in March with a 100 basis-point hike, raising the policy rate to 28%.
Dr. Agyapomaa Gyeke-Dako of the University of Ghana Business School explained, “The central bank may maintain its current policy stance to avoid reigniting inflation, especially with utility prices rising.”
Mark Bohlund of REDD Intelligence also warned that easier monetary conditions could bring back inflationary risks. The Monetary Policy Committee (MPC) will continue to monitor inflation before adjusting rates.
Positive Outlook for the Cedi and Economy
The International Monetary Fund (IMF) has expressed optimism about Ghana’s economic trajectory, citing the cedi’s performance as a “bright spot” in the country’s recovery efforts. IMF Mission Chief Stéphane Roudet said the trend boosts confidence that inflation will fall further in the months ahead.
The MPC projects that inflation could drop to 16% by end of 2025, and potentially return to the central bank’s target range of 6%–10% by Q2 2026.
Conclusion
The Ghana cedi’s recent rise is not just a symbolic victory—it is actively contributing to economic recovery, reducing inflation, and strengthening consumer purchasing power. As Ghana continues to work with the IMF and pursue sound fiscal policies, the performance of the cedi is a clear sign that the country is on a path to greater economic stability.
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