President John Dramani Mahama has credited the cedi’s recent appreciation to a surge in Ghana’s foreign reserves and fiscal reforms aimed at restoring macroeconomic stability and investor confidence.
Speaking at the Ghana–EU Business Forum in Accra, Mahama said the country’s gross international reserves have risen from $8.9 billion in December 2024 to $10.6 billion as of April 2025. The 19% jump, he argued, reflects strengthened external buffers and is supporting the rebound in the cedi, which has appreciated modestly against the U.S. dollar in recent weeks.
“Fiscal consolidation is underway,” Mahama told delegates, noting that Ghana had cut its fiscal deficit on a commitment basis to 6.4% of GDP in the first half of 2025, down from 7.5% in 2024. “We are on track to meet our 2025 end-year [target] of 3.1% through expenditure rationalisation, improved domestic revenue mobilization and strong anti-corruption measures.”
The forum, themed “Deepening Ghana-EU Cooperation on Trade and Investment in Non-Traditional Value Chains under the EU Global Gateway Strategy,” brought together policymakers and private sector leaders to discuss bilateral investment opportunities outside Ghana’s traditional commodities space.
While Ghana continues to face elevated debt levels and lingering inflation risks, recent macro data suggest tentative progress. Slowing inflation and stabilizing exchange rates have created space for monetary authorities to pause rate hikes, while external financing pressures have eased due to better-than-expected inflows from exports and concessional lending.
“These figures, though early in the year, are clear signs of discipline and inclusive economic recovery,” Mahama said, pointing to a rebound in trade and investor sentiment. “Our trade with the European Union remains robust and neutrally beneficial.”
The President also used the platform to court both domestic and foreign capital, positioning Ghana as a rule-based investment destination. “I assure all potential investors that under this administration, Ghana is committed to transparent governance, policy predictability and a reformed business environment,” he said. “We are restoring confidence in our public procurement systems, enforcing contract sanctity and protecting investor rights under both domestic and international legal regimes.”
Ghana’s return to market stability comes after a two-year period of fiscal stress marked by a Eurobond default, IMF intervention, and cedi volatility. The country’s $3 billion IMF programme remains central to restoring credibility, with the next review expected to assess progress on fiscal consolidation, revenue reforms, and structural benchmarks.
Analysts see the cedi’s near-term outlook tied closely to reserve adequacy and fiscal execution. Any slippage, they warn, could trigger renewed pressure on the currency and weigh on foreign investor participation in local debt markets.
The cedi as of today, May 20, is trading at GHS 12.19 to a dollar. It has however, been projected by Fitch Solutions to end the year at GHS 15.5
