Financial Analyst Dr. Richmond Atuahene is cautioning against what he describes as a premature celebration over the strong performance of the Ghana cedi.
The local currency, the cedi, may be enjoying a period of some stability, but the analyst says the development is threatened by the developing tensions in the Middle East and the impending United States Reciprocal Tariffs.
In a detailed analysis of the forex development copied to The High Street Journal, Dr. Atuahene argued that the cedi is booming thanks to a combination of strong gold export earnings, increased remittances, lower imports, and fiscal restraint.
Ghana’s gold industry has been a key driver of recent economic performance, with exports surging from $7.6 billion in 2023 to an estimated $11.6 billion in 2024, representing a 52.6 percent increase. With prices now reaching approximately $3,300 per ounce in early 2025, up from $2,340 per ounce in 2024, gold now constitutes 57 percent of the country’s total export revenue.
Despite the decline in Ghana’s cocoa production and export, the significant increase in prices of cocoa on the market has also contributed to the forex inflow into the economy, hence the stability of the cedi
He also indicates that other factors, such as high remittances, lower crude oil prices, and a slowdown in imports due to 2024 election uncertainties, have temporarily bolstered the country’s reserves and supported the cedi.
But Dr. Atuahene fears the stability is at risk due to certain global developments. Dr. Atuahene warned that external shocks could easily erode the progress made. He also pointed to the U.S.’s increasing protectionist policies, including potential tariff hikes, which could negatively affect global trade flows and investor confidence, both crucial to Ghana’s economic outlook.
He says, “strong fiscal consolidation, strong gold exports, high remittances in the past six months, and slack in imports because of political uncertainties, lower crude prices, and deferred external interest payments have all contributed to the stable local currency against major trading currencies.”
“We need not have to celebrate as a result of the current cedi stability because of the geopolitics in the Middle East and the USA tariff increases,” he warned.
The financial analyst is therefore calling on the government to continue with the structural reforms to strengthen the economy against these developments that might disrupt the gains made in the currency.
