The Ghanaian cedi’s impressive 16.7% appreciation between January and May 2025 has been attributed to strategic policy interventions spearheaded by the Mahama administration. Sammy Gyamfi, Acting CEO of the Ghana Gold Board and National Communications Officer of the National Democratic Congress (NDC), has highlighted these policies as pivotal in stabilizing the economy and boosting investor confidence.
In a detailed write-up, Mr. Gyamfi underscored how a combination of fiscal discipline, tight monetary policy, and robust foreign exchange inflows drove the cedi’s performance. He noted that these interventions reflect the Mahama administration’s commitment to long-term economic stability and growth.
Monetary Policies Strengthening the Cedi
The key among the measures was the Bank of Ghana’s decision in March 2025 to raise the Monetary Policy Rate from 27% to 28%. This move, coupled with aggressive liquidity sterilization through open market operations, helped curb inflationary pressures and stabilize the cedi.
“These stringent monetary measures demonstrate a disciplined approach to managing inflation and ensuring currency stability,” Gyamfi stated.
Fiscal Discipline Restores Investor Confidence
According to Mr. Gyamfi, fiscal consolidation under the Ministry of Finance has been instrumental in restoring investor confidence. The government’s prudent public finance management and commitment to reducing the fiscal deficit have created a stable economic environment, attracting both local and foreign investors.
“Investor confidence is a reflection of Ghana’s disciplined fiscal policies, which have laid a strong foundation for economic resilience,” he emphasized.
Boost in Forex Inflows and Reserves
Ghana’s foreign exchange reserves have been bolstered by a surge in gold exports, driven by the collaborative efforts of the Ghana Gold Board and the Precious Minerals Marketing Company (PMMC). Additional contributions from cocoa exports and remittances have further enhanced the country’s forex position.
“These unprecedented forex inflows have been a game-changer, helping to strengthen the cedi against major global currencies,” Gyamfi explained.
Global Context and Dollar Weakness
The appreciation of the cedi has also been supported by global economic conditions, including a weakening US dollar due to heightened global uncertainties. This favourable global context has amplified the impact of Ghana’s internal policy measures.
Praising Mahama’s Economic Vision
Gyamfi lauded the Mahama administration’s deliberate and disciplined economic strategy, which he described as a blueprint for achieving sustainable growth and stability. “The results speak for themselves. This government’s commitment to sound economic management has delivered tangible benefits for the Ghanaian economy,” he said.
This remarkable achievement is being celebrated as a testament to the effectiveness of Mahama-led policies and their positive impact on Ghana’s economic trajectory.
Story by: Mercy Addai Turkson #ahotoronline.com
