Ghana Cedi Tops Global Currency Rankings in April, Easing Inflation

The Ghanaian cedi has emerged as the world’s top-performing currency this month, appreciating nearly 16% against the US dollar since early April, according to Bloomberg data. This surge has provided significant relief from inflationary pressures, marking a pivotal moment in the country’s economic recovery efforts.

As of today, the cedi is trading at GH₵13.4 to the dollar—its strongest level in months. The appreciation has helped lower the cost of imports, contributing to a notable drop in consumer prices. Ghana’s consumer price inflation fell to 21.2% in April, down from 22.4% in March, marking the lowest level in eight months. Monthly inflation slowed to 0.8%, driven primarily by reduced import costs.

Government Statistician Alhassan Iddrisu highlighted the impact of the cedi’s strength, noting declines in both food and non-food inflation. Food inflation dipped to 25% from 26.5%, while non-food inflation dropped to 17.9% from 18.7%.

Despite the cedi’s rally, the Bank of Ghana is expected to tread cautiously with monetary policy. Following a surprise 100 basis-point rate hike in March, which pushed the key interest rate to 28%, analysts say the central bank may hold off on further changes until inflation risks—such as rising utility costs—are more clearly under control.

“The cedi’s appreciation has helped, but inflationary threats remain,” said Dr. Agyapomaa Gyeke-Dako, senior lecturer at the University of Ghana Business School.

Mark Bohlund, senior credit analyst at REDD Intelligence, echoed the sentiment, warning that premature rate cuts could reignite inflation. Still, Bank of Ghana Governor Johnson Asiama hinted at potential rate relief later in the year if disinflation persists.

Since September 2021, Ghana’s inflation has remained above the central bank’s 6–10% target band, spurred by a debt crisis and a steep decline in the cedi. However, the Monetary Policy Committee projects a fall to 16% by the end of 2025, with a return to target by mid-2026.

The IMF, which is supporting Ghana through an economic programme, expressed optimism. “It makes us very confident that inflation is going to go down in the next few months toward the program objectives,” said Stéphane Roudet, IMF Mission Chief to Ghana.

For now, the strengthening cedi stands as both a symbol of resilience and a key instrument in Ghana’s journey toward macroeconomic stability.