The Ghanaian cedi is on track to strengthen against major international currencies in 2025, potentially marking its first significant appreciation in over two decades, according to Adjei Boateng, CFA, Chief Investment Officer (CIO) at Black Stars Advisors.
Boateng’s projection follows a recent rebound in the cedi’s performance against the U.S. dollar, euro, and British pound, a reversal that has sparked renewed confidence in the currency’s medium-term outlook amid broader macroeconomic improvements.
Speaking during a televised discussion on Monday, May 12, Boateng attributed the currency’s recent momentum to a mix of improved foreign inflows and sounder economic management.
“Quarter 4 is for obvious reasons, because our sisters and brothers abroad often come in, they send money and come and spend. That often feeds in a lot, and there are a lot of activities,” he said.
The fourth quarter, he added, tends to generate a seasonal uplift for the cedi due to heightened remittance flows and increased spending from diaspora visitors during the festive season.
“All of that feeds into a strong quarter 4. The years in which we have seen depreciation in the first quarters are often quite small. So, generally, there’s a lot more remittances coming in. The Detty December and other activities show that our brothers and sisters come in. Historically, that has been quite positive,” he noted.
The cedi’s recent gains come as Ghana continues to stabilize its macroeconomic framework, following a period of fiscal tightening and improved monetary oversight. The currency has historically faced consistent depreciation pressures driven by trade imbalances, external debt servicing, and inflation volatility.
While Boateng’s outlook may reflect growing optimism among market watchers, still, the cedi’s trajectory remains sensitive to external shocks and domestic policy continuity.
