President John Dramani Mahama has disclosed that the strong inflows of foreign currencies in the economy coupled with improved trade balances have shored up the Ghana cedi gains on the currency market.
In the last four months. the cedi has demonstrated resilience, moving from one of the worst performing currencies last year to the best-performing currency against the United States dollar.
Financial news hub, Bloomberg has reported that the Ghana cedi appreciated by nearly 16% against the dollar in the last few months.
President Mahama, who was speaking at a Ghana-European Union (EU) trade event on Tuesday explained that the improved trade balances as well as a boosted investor confidence are accounting for the cedi’s rise.
“The Ghanaian Cedi which depreciated by 19.2 percent in 2024 has shown signs of recovery, appreciating by 3.9 percent against the U.S dollar by the end of April 2025. This has been supported by stronger forex inflows, improved trade balances and growing investor confidence,” the president said.
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President Mahama said the government was enhancing the fiscal structures of the economy by demonstrating fiscal responsibility. “Fiscal consolidation is underway. We’ve reduced the fiscal deficit on commitment basis from 7.5% of GDP in 2024 to 6.4% in the first quarter of 2025.
He was convinced that government was “on track” to meet its 2025 target of 3.1%.
Among other measures, he said government will achieve this by bolstering the domestic revenue mobilization and introducing strong anti-corruption measures.
The president said although it was early to tout the positive figures, they were “signs of a disciplined and inclusive economic recovery”.