Cedi Surges Under Mahama: A victory for Ghana's economic strategy

In a remarkable about-face, Ghana's currency, the Cedi, experienced an unprecedented surge in value during 2025, marking a significant victory for the country's economic policies under the leadership of President John Dramani Mahama.

For the first time in recent history, the Cedi recorded a year of substantial appreciation against all major trading currencies, painting a picture of renewed economic stability and bolstering confidence in the Ghanaian economy.

The performance of the Cedi in 2025 stands in stark contrast to the previous year. As of December 31st, 2025, the Cedi had appreciated by a staggering 40.7% against the US Dollar.

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This is a monumental shift compared to the 19.2% depreciation recorded in the same period in 2024. Similarly, the Cedi strengthened by 30.9% against the British Pound, a significant improvement from the 17.8% depreciation experienced the year prior. Against the Euro, the Cedi demonstrated equally impressive resilience, appreciating by 24.0% after a 13.7% depreciation in 2024.

This dramatic reversal of fortune for the Cedi is an evidence of the effectiveness of the economic strategies implemented by President Mahama's administration. While specific details of these policies were not immediately available, their impact is undeniable.

The significant appreciation suggests a multi-faceted approach likely encompassing fiscal discipline, improved trade balances, and strategic interventions in the foreign exchange market.

The positive impact of a strengthened Cedi reverberates throughout the Ghanaian economy. A stronger currency lowers the cost of imports, potentially leading to lower inflation and increased purchasing power for consumers. Businesses that rely on imported raw materials and equipment will also benefit from reduced operational costs, which can translate to increased profitability and competitiveness.

Furthermore, a stable and appreciating Cedi fosters a more attractive investment climate. Foreign investors are more likely to commit capital to a country with a predictable and stable currency. This increased investment can fuel economic growth, create jobs, and further strengthen the national economy.

The remarkable appreciation of the Cedi also reflects positively on Ghana's international standing. It demonstrates to the global community that the country is managing its economy responsibly and is capable of attracting and retaining foreign capital. This enhanced reputation can unlock access to more favourable borrowing terms and facilitate international partnerships.

While the precise details of the policies driving the Cedi's appreciation require further investigation, the results speak volumes. The Mahama administration's success in turning the tide on currency depreciation is a significant achievement that deserves recognition. This positive momentum provides a solid foundation for future economic growth and development in Ghana.

However, it is crucial to acknowledge that sustainable economic growth is a marathon, not a sprint. Maintaining the Cedi's stability and building on this positive momentum will require continued vigilance and prudent economic management. The government must remain committed to fiscal discipline, diversify the economy, and implement policies that promote long-term sustainable growth.

The appreciation of the Cedi in 2025 under President Mahama's leadership represents a pivotal moment for Ghana's economy. It offers a glimmer of hope and a renewed sense of optimism for the future. By building upon this success and implementing sound economic policies, Ghana can continue its journey towards prosperity and economic stability. This accomplishment serves as a valuable lesson, demonstrating that with strategic leadership and effective policies, even seemingly intractable economic challenges can be overcome.

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