The Ghana cedi has been named the world’s best-performing currency this month, after appreciating nearly 16 per cent against the US dollar since the start of April 2025 per Bloomberg.
The currency’s rally has helped ease inflationary pressures, contributing to Ghana’s lowest inflation rate in eight months. As of today, the cedi is trading at GH₵13.4 against the dollar.
Consumer price inflation fell to 21.2 per cent in April, down from 22.4 per cent in March, Government Statistician Alhassan Iddrisu announced in Accra on Wednesday. Monthly price increases slowed to 0.8 per cent, driven largely by falling import costs due to the cedi’s strength.
Non-food inflation dropped to 17.9 per cent from 18.7 per cent, while food inflation also eased, declining to 25 per cent from 26.5 per cent. “A rally in the cedi reduced the cost of imports,” Iddrisu confirmed, crediting the currency’s appreciation with driving much of the recent inflation relief.
Bloomberg data showed that since the beginning of April, the cedi has outpaced all global currencies in terms of gains against the US dollar, bolstering consumer confidence and easing pressure on the cost of imported goods.
Despite this progress, analysts say it’s unlikely that the Bank of Ghana will rush to lower interest rates at its upcoming policy meeting. “It tightened at its last meeting to mop up any excess liquidity,” said Dr. Agyapomaa Gyeke-Dako, an economist and senior lecturer at the University of Ghana Business School. “So now the central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices.”
The Monetary Policy Committee (MPC) had surprised markets in March with a 100 basis-point hike, raising the key rate to 28% as part of efforts to stabilise prices. The central bank has indicated it will continue to assess inflation trends before easing its stance.
“Easier monetary conditions could rekindle inflationary pressures,” warned Mark Bohlund, senior credit analyst at REDD Intelligence, cautioning that the Bank of Ghana may hold off on any near-term rate cuts.
Credit: graphiconline