Research and Policy Analysts, Africa Policy Lens (APL) has highlighted factors that have accounted for the significant appreciation of the Ghanaian cedi in the year 2025, making a notable turnaround after a difficult 2024.
According to APL, the cedi has appreciated by over 20% against the US dollar so far this year, making it one of the best-performing currencies globally.
As of mid-May 2025, the cedi is trading at approximately GH¢13.5 to the dollar, reflecting a 17% gain since January.
APL attributes this recovery to a combination of factors including the government's fiscal consolidation measures like a sharp reduction in public spending, suspension of new projects, and a freeze on the clearance of arrears which have helped reduce pressure on the currency. "The Ministry of Finance is reported to have held back payments worth about GH¢69 billion pending audit," APL stated, "effectively curbing excess demand for foreign exchange." At the same time, the Bank of Ghana (BoG) has played a central role through strategic interventions.
