President John Dramani Mahama placed currency stability at the center of Ghana’s economic turnaround in his 2026 New Year address, highlighting a development that represents one of the most dramatic currency reversals in emerging market history and signals improved business conditions heading into the new year.
The cedi recorded its first annual appreciation against the United States dollar in more than three decades during 2025, gaining approximately 30 percent according to Bloomberg data and ending December at GH¢10.45 on the interbank market compared to GH¢14.85 at the start of January. The performance marked a stunning reversal from 2022, when the currency ranked as the world’s worst performer after depreciating over 55 percent amid sovereign debt distress.
The President noted that Ghana has achieved relative currency stability, a statement reflecting months of tighter macroeconomic management, improved fiscal discipline and restored credibility in economic governance following years of volatility that undermined business planning and investment decisions. The currency closed 2025 trading at GH¢12.30 per dollar at retail foreign exchange bureaus.
President Mahama projected that Ghana is on track to be ranked among the best performing currencies in the world for 2025, an outlook that signals confidence despite the cedi finishing fourth among African currencies behind the Russian ruble, Botswana pula and Zambian kwacha according to World Bank assessments. The currency appreciation enhances Ghana’s trade competitiveness by lowering imported inflation while improving risk profiles for portfolio investors and foreign lenders.
Currency stability is restoring confidence among investors, businesses and international partners, the President emphasized during his televised address to the nation on January 1. Exchange rate stability has improved cash flow management among domestic firms, easing pressure to adopt defensive pricing strategies that previously distorted market dynamics and contributed to elevated inflation expectations.
Lower exchange rate risk enhances the attractiveness of Ghanaian assets, particularly in fixed income and equity markets where foreign portfolio investors retreated dramatically during the 2022 crisis. The calmer foreign exchange environment creates conditions for more predictable interest rate expectations, supporting credit growth and long-term investment planning especially for small and medium enterprises previously constrained by volatile costs and uncertain margins.
The Bank of Ghana (BoG) implemented multiple interventions contributing to currency strength throughout 2025. The central bank injected over $490 million into foreign exchange markets to stabilize short-term pressures while transitioning to spot market forex auctions that improved dollar liquidity and reduced speculative hoarding that previously disrupted market functioning.
Gold export revenues emerged as a critical driver of currency performance. Ghana’s gold reserves increased from 22.3 tonnes in May 2024 to 31.2 tonnes by April 2025, a 40.6 percent rise that strengthened intrinsic value backing the cedi. Export earnings from gold surged from $7.6 billion in 2023 to $11.6 billion in 2024, buoyed by international prices climbing from approximately $2,000 per ounce to $3,400 by May 2025.
The establishment of the Ghana Gold Board (GoldBod) under Act 1140 in May 2025 played a transformative role by requiring domestic gold purchases be settled in cedis before export. The policy directed small scale mining output into formal channels while building foreign exchange reserves that reached $11.4 billion by March 2025, providing substantial buffer capacity for currency defense operations.
Cocoa prices remained elevated despite volatility, contributing additional export revenue alongside oil and non-traditional exports that pushed Ghana’s trade surplus to a long-term high of $4.3 billion in 2024. The improved external position strengthened the balance of payments and reduced structural pressure on the cedi from import financing requirements.
Inflation declined from over 23 percent at the end of 2024 to a projected single digit figure of just above 5 percent by the close of 2025, according to President Mahama’s address. The sharp disinflation trajectory, supported by currency stability and tighter monetary policy, creates space for eventual interest rate reductions that would further support economic activity.
The International Monetary Fund (IMF) program, which includes a $3 billion bailout over three years, provided essential financial and technical support focused on restoring macroeconomic stability through demand management reforms. President Mahama announced that Ghana has begun the process of exiting the IMF program with dignity, not as supplicants but as partners, signaling confidence in maintaining stability without continued program support.
Successful debt restructuring across domestic bondholders, bilateral creditors and international lenders removed significant uncertainty that previously weighed on currency performance. Ghana reached agreements with over 90 percent of holders of its $13 billion Eurobond portfolio, while all 25 members of its Official Creditor Committee signed a memorandum of understanding covering approximately $5.4 billion in bilateral debt.
The temporary suspension of external debt servicing under the Debt Restructuring Programme reduced foreign currency demand typically required for debt obligations, alleviating downward pressure on the cedi between January and July 2025. Standard & Poor’s Global Ratings upgraded Ghana’s foreign currency sovereign credit rating from Selective Default to CCC plus, reflecting improved fiscal and external positions.
Currency appreciation brings mixed economic effects requiring careful management. While reduced import costs and lower inflationary pressures benefit consumers, export competitiveness faces pressure as Ghanaian products become more expensive in international markets. Mining companies recorded substantial revenue gains from higher gold prices, though some local exporters relying on weaker currency for global competitiveness saw margins compressed.
Bank of Ghana Governor Johnson Asiama cautioned against complacency, stating that stability does not mean fixation and highlighting the need to balance currency strength with export competitiveness. Economists noted that the central bank may delay monetary easing due to rising utility prices and lingering inflationary risks, as inflation remains above the 6 to 10 percent target band.
External factors including global interest rate movements, commodity price fluctuations and geopolitical developments remain important variables that could influence Ghana’s growth trajectory during 2026. The depreciation of the United States dollar driven by investor uncertainty over trade policies and recession fears eased global demand pressures, contributing to the cedi’s relative stability and recent appreciation.
President Mahama’s message reinforces growing consensus within the business community that Ghana has moved beyond crisis management into a phase of cautious consolidation. With currency stability emerging as a key anchor of confidence, firms and investors are increasingly reassessing Ghana as a more predictable and competitive destination for capital allocation in 2026 and beyond.
The President issued a unifying call to action, urging young people to lead today, entrepreneurs to invest in the economy, civil society to hold government accountable and diaspora members to bring expertise and resources home. He stressed that there is no New Patriotic Party (NPP) Ghana, no Convention People’s Party (CPP) Ghana or National Democratic Congress (NDC) Ghana, but only one Ghana.
