The Ghana Cedi has strengthened significantly against the US Dollar, gaining approximately 15% in the fourth quarter of 2024. The appreciation comes after a period of depreciation that saw the cedi hit record lows.
The Bank of Ghana attributes the strength to:
- IMF program approval and inflows
- Improved export earnings from cocoa and gold
- Diaspora remittances reaching record levels
- Monetary policy measures
- Reduced import demand due to tight economic conditions
The cedi is currently trading at GHS 12.5 to the dollar, compared to GHS 15.5 in September. This represents a significant reversal of the depreciation trend.
