Economist Professor Patrick Asuming of the University of Ghana Business School has warned that the Ghanaian cedi’s recent gains against the US dollar may not persist through 2025, despite its current appreciation.
Speaking on Channel One TV’s The Big Issue, Asuming attributed the cedi’s improved performance to heightened public and investor confidence following Ghana’s post-election stability, the 2024 national budget rollout, and a staff-level IMF agreement. However, he emphasized the trend’s fragility. “I don’t expect [the cedi] to end the year trading at its current rate against the dollar,” he stated, calling the gains “temporary.”
Citing Bank of Ghana data, Asuming noted a 10% rise in consumer and business confidence indices between late 2024 and February 2025. While acknowledging fiscal reforms and technical measures as contributing factors, he stressed that optimism-driven momentum could wane. “Short-term sentiment improvements may not offset future volatility,” he cautioned, urging policymakers to prepare for potential currency pressures.
The warning underscores Ghana’s ongoing economic challenges, where IMF agreements and investor sentiment remain pivotal to stabilizing the historically volatile cedi.
