Financial analyst Joe Jackson, CEO of Dalex Finance, attributes the recent strengthening of the Ghanaian cedi against the US dollar to favorable global dynamics and government fiscal reforms.
Speaking on TV3’s Key Points (May 17), Jackson highlighted declining global oil prices and US tariff policies as key external drivers, alongside domestic austerity measures.
“The Trump-era trade war weakened the dollar globally, reducing oil prices to around $40 per barrel,” Jackson explained. This drop eased pressure on Ghana’s import costs, as fuel a $400 million monthly expense became cheaper. Concurrently, investors flocked to gold amid global uncertainty, boosting Ghana’s gold exports and foreign exchange reserves.
Jackson also credited the government’s commitment to curbing public expenditure and debt servicing, which bolstered investor confidence. “While external factors aligned, Ghana’s prudent policies set it apart,” he noted, contrasting the cedi’s gains with Nigeria’s naira depreciation and modest CFA franc improvements in West Africa.
He cautioned against oversimplifying the trend: “If global factors alone were responsible, why aren’t neighboring economies seeing similar results? Ghana’s deliberate reforms amplify these external advantages.”
The cedi’s rebound underscores the interplay of international market shifts and localized fiscal discipline, positioning Ghana as a regional outlier in navigating economic headwinds.
