Mahama gov’t policies behind Cedi’s strong performance – Sammy Gyamfi

• Posted on May 22, 2025May 22, 2025
• by Nana Kwesi Coomson
• Comment

The recent appreciation of the Ghana cedi—up 16.7% between January and May 2025—is the result of strategic policy interventions by the Mahama-led government, according to Sammy Gyamfi, Acting CEO of the Ghana Gold Board and National Communications Officer of the National Democratic Congress (NDC).

In a statement, Mr. Gyamfi credited the strengthening of the cedi to a mix of tight monetary policy, fiscal discipline, and strong foreign exchange inflows.

He noted that the Bank of Ghana’s decision in March 2025 to raise the Monetary Policy Rate from 27% to 28%, along with aggressive liquidity sterilization through open market operations, played a key role in stabilizing the currency.

Additionally, he cited renewed investor confidence resulting from fiscal consolidation and prudent public finance management under the Ministry of Finance.

The surge in gold exports, driven by the Ghana Gold Board and the Precious Minerals Marketing Company (PMMC), has also boosted foreign reserves, alongside increased inflows from cocoa and remittances.

“These measures, combined with a weakening US dollar due to global uncertainties, have collectively strengthened the cedi,” he said.

Gyamfi praised the Mahama administration for its “deliberate and disciplined” economic strategy aimed at long-term stability.

Read Sammy Gyamfi’s full write-up below:

1. Stringent monetary policy stance, complemented by aggressive liquidity sterilization by the Bank of Ghana. This was partly achieved through the strategic policy decision by the Bank of Ghana in March 2025, to increase the Monetary Policy Rate by 100 basis points from 27% to 28% and the Open Market operations of the Bank. 

2. Fiscal consolidation by the Ministry of Finance and the restoration of investor confidence in the Ghanaian economy anchored on fiscal discipline and prudent public finance management.

3. Robust forex inflows and accelerated foreign reserve accumulation through unprecedented gold purchases and exports by the PMMC/GoldBod. As well as enhanced foreign exchange inflows from cocoa, remittances among others.

These policy interventions alongside a favorable global context, marked by the weakening of the US dollar amid global uncertainties, have significantly driven the strength of the Ghana cedi.