Accra: Data from the Bank of Ghana reveals a significant appreciation of the Ghanaian cedi against the United States (US) Dollar in the first half of May 2025. Comparing the mid-rate of GHS13.8 recorded on May 2 to the mid-rate of GHS12.3 on May 19, the cedi has strengthened by approximately 10.9 percent against the dollar during the period.

According to Ghana News Agency, further analysis shows some fluctuation within the timeframe. For instance, between May 9 and May 16, the cedi also showed an upward trend, appreciating by roughly 6.1 percent based on the provided mid-rates of GHS13.1 and GHS12.3, respectively. These figures underscore the volatility inherent in the foreign exchange market and the current positive trajectory of the cedi against the dominant US currency. The Bank of Ghana continues its oversight of these developments.

Despite this progress, opinions on the factors accounting for the appreciation of the cedi against the dollar differ, as experts attribute various contributory factors. Dr. Zakaria Mumuni, First Deputy Governor, Bank of Ghana, said the cedi's appreciation against the dollar was due to the Central Bank's aggressive liquidity management, including tightening monetary policy and a hike in interest rates. Dr. Kabiru Mahama, Member of Parliament for Walewale, attributed the appreciation to two monetary policies by the central bank, including the injection of an excess of $492 million into the market. He said the Government's decision not to spend in the first quarter of the year also helped to shore up the cedi.

According to Ghana International Trade and Finance (GITF), an investment agency, the cedi's appreciation was partly due to market sentiments and external factors. It said external factors such as the United States trade rift with China occasioned the appreciation, especially when investors offloaded US assets. The GITF attributed the appreciation to the Gold Board initiative through strengthened reserves.