Ghana’s cedi has appreciated 16.7% against the U.S. dollar from January through May, a rally attributed to a combination of fiscal consolidation, monetary tightening, and stronger foreign currency inflows, according to a statement by Sammy Gyamfi, Acting CEO of the Ghana Gold Board and National Communications Officer for the opposition National Democratic Congress (NDC).

Mr. Gyamfi credited the turnaround to policies introduced under the administration of former President John Mahama, citing what he described as a “disciplined and deliberate” economic strategy aimed at stabilizing the local currency and restoring investor confidence.

The Bank of Ghana’s decision in March to raise its benchmark policy rate by 100 basis points to 28% was among the key policy moves that helped tame inflation and attract short-term capital flows, Gyamfi said. The central bank also tightened liquidity through aggressive open market operations.

On the fiscal side, Gyamfi pointed to renewed investor confidence driven by spending discipline and public finance reforms under the Finance Ministry. “We are seeing the effects of fiscal consolidation playing out in real-time,” he said.

Export performance has also played a central role. Gold exports surged, buoyed by the operations of the Ghana Gold Board and the state-run Precious Minerals Marketing Company. Inflows from cocoa exports and remittances further bolstered the central bank’s foreign reserves.

Mr. Gyamfi noted that global macroeconomic trends—including a weakening U.S. dollar—have also supported the cedi’s appreciation. Still, he emphasized that Ghana’s improving fundamentals were the primary driver.

The Mahama administration’s policies, he said, “are laying the foundation for long-term stability and sustainable growth.”

Source:TheDotNews