Ghana’s cedi is strengthening against the U.S. dollar, helped by falling global oil prices, a weakening dollar, and renewed investor interest in gold, according to Joe Jackson, Chief Executive Officer of Dalex Finance. He also credited recent government efforts to reduce spending and manage debt servicing as supporting factors in stabilizing the local currency.
“External factors have been good to Ghana and we have put ourselves in a position where we can take advantage of the external factors,” Jackson said in an interview on TV3’s Key Points on May 17. “It is very important to appreciate both sides of the divide.”
Jackson pointed to the U.S. trade war and tariff policies under the Trump administration as a key driver behind the global dollar depreciation. “The Trump tariff war has had three effects on us. One, the dollar has depreciated against all major trading currencies,” he said.
This depreciation, combined with deliberate U.S. efforts to push crude oil prices down to around $40 per barrel, has directly benefited Ghana’s trade balance, Jackson explained. Fuel is Ghana’s single largest import, valued at approximately $400 million monthly. With lower oil prices, demand for foreign exchange to cover fuel imports has eased, lifting pressure off the cedi.
“The cost of that has come down so there is less pressure on the cedi,” Jackson said. “The price of oil has also been falling. This same global instability has meant that investors have moved their dollars from other currencies into gold because they want somewhere safe.”
The pivot toward gold has bolstered Ghana’s export earnings, with Jackson noting a sharp rise in gold exports since the start of the year. Ghana, a top gold producer, has benefited as investors seek safe-haven assets amid market volatility.
Beyond external trends, Jackson emphasized that the Ghanaian government’s domestic policy decisions are also playing a role in the cedi’s recent gains.
“Have the external factors aligned? Yes. Have we also done the right thing? Yes,” he said. “Look across West Africa, the CFA has appreciated against the dollar but nowhere near what has happened to the cedi. Close in Nigeria, even in the midst of the dollar depreciating on the global market, the naira is still depreciating against the dollar.”
Jackson credited the government’s fiscal discipline, particularly its efforts to curb public expenditure and reduce debt servicing costs, for restoring investor confidence in Ghana’s economy. He questioned why other West African economies were not seeing similar gains if external factors were the only drivers at play.
“You cannot write off everything and say it is global,” he said. “If it is so, why are the other West African countries not getting the same effect we are getting? Why are some even going backwards?”
The cedi’s performance comes at a critical time for Ghana, which has faced currency volatility in recent years amid inflationary pressures and public debt challenges. While Jackson acknowledged that favorable global conditions are helping, he warned against complacency and urged sustained structural reform to lock in gains.
