Analysts Urge Fiscal Discipline, High Gold Prices to Sustain Cedi Gains
Accra, May 13, 2025 – Leading economic experts are cautioning that the Ghanaian cedi’s recent appreciation against the US dollar—while encouraging—must be supported by sustained policy action and favourable global commodity conditions to be lasting.
Speaking on Channel One TV’s The Point of View, economist Dr. Theo Acheampong emphasized that maintaining high global gold prices and tightening government expenditure will be key to preserving the momentum.
“One of the key factors is the continued strength of gold prices. If gold remains high for the rest of the year, I can confidently say the cedi will continue to gain against the dollar,” Dr. Acheampong stated.
He urged the government to demonstrate fiscal discipline, especially with the mid-year budget review approaching in July, arguing that a commitment to curbing spending will help reinforce positive signals to investors and the forex market.
Dr. Acheampong further noted that the cedi’s strength, if properly managed, could bolster investor confidence and support broader economic growth in the second half of 2025.
Meanwhile, Adjei Boateng, Chief Investment Officer at Black Stars Advisors, offered a complementary perspective, stressing that currency stability is more important than short-lived gains.
“Stability over a prolonged period is perhaps more valuable than short-term appreciation, because it brings predictability,” Boateng explained. “That allows businesses and individuals to plan with greater confidence.”
He aligned with sentiments previously expressed by the Governor of the Bank of Ghana, who prefers a gradual stabilization of the cedi over the next three to five years to support sound macroeconomic planning.
Boateng also suggested that the current foreign exchange momentum provides an opportunity for Ghana to ease its external debt burden, particularly if the country has built up sufficient reserves.
“If we’ve built up reserves, perhaps we could channel some of that into reducing external debt. That would help lower our interest payments and free up fiscal space for other priorities,” he concluded.
As the cedi now trades around GH¢13.29 to the dollar, significantly improved from rates above GH¢16 earlier in the year, the coming months will be pivotal in determining whether this recovery can be sustained through strong fiscal policies and favorable global conditions.
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