The local currency, the cedi, has strengthened, closing at GH¢12.00 against the US dollar in the foreign exchange market, marking its highest value this year.
This appreciation indicates an increase in investor confidence in the economy, supported by effective fiscal consolidation and stringent monetary policies implemented by the Bank of Ghana.
As of Wednesday, May 21, reports from vision 1 fm News indicated that the cedi was trading at GH₵12.10 to the US dollar at various forex bureaus. The British Pound was priced at GH₵16.85, while the Euro was at GH₵14.60.
The Cedi’s performance is attributed to renewed foreign exchange inflows resulting from enhanced export revenues, remittances, and funding from Ghana’s IMF-supported program.
Analysts highlight the Central Bank’s increased regulatory scrutiny in the forex market, which has mitigated speculative pressures and aligned market rates more closely with economic fundamentals.
Professor Godfred Bokpin from the University of Ghana Business School remarked that the fiscal strategy aimed at achieving this outcome suggests that the current situation is intentional rather than coincidental.
Furthermore, the Bank of Ghana is implementing significant reforms to sustain the recent improvements in the cedi’s value. Governor Dr. Johnson Asiama noted that this appreciation has alleviated
