Prioritize Medium-Term Stability of the Cedi – ISSER urges Govt

Praisebell LarbiNovember 3, 2025

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By Praisebell Rosemond Larbi

The Institute of Statistical, Social and Economic Research (ISSER) has urged policymakers to prioritize the stability of the Ghana cedi in the medium term, even as it commended the authorities for the currency’s strong performance so far in 2025.

According to the institute’s 2024 State of the Ghanaian Economy Report (SGER), the cedi has appreciated by over 28 percent against the US dollar on the retail market since the beginning of the year, reflecting renewed market confidence, prudent monetary policy, and improved fiscal discipline.

“The cedi has performed creditably against all three major foreign currencies so far. This stability is likely to be maintained given the $385 million expected after the fifth ECF (Extended Credit Facility) review by the International Monetary Fund (IMF), Bank of Ghana interventions, Gold Board support, fiscal management, and sentiments,” the report noted.

ISSER attributed this impressive showing to the combined impact of the Bank of Ghana’s (BoG) interventions in the foreign exchange market, the operationalization of the Gold-for-Oil and Gold-for-Reserves initiatives, and improved management of government expenditure. It added that these efforts, together with sustained investor confidence and a steady inflow of remittances, have played a vital role in strengthening the local currency.

As of this week, the cedi is trading at approximately GH¢12.10 to the US dollar at forex bureaus and GH¢10.90 on the interbank market. This marks one of the strongest performances in recent months, with analysts attributing the rebound to positive market sentiment, consistent central bank action, and a favourable balance of payments outlook.

On the interbank market, the local currency appreciated to GH¢10.85 per US dollar (+9.68%), GH¢14.42 per pound (+10.00%), and GH¢12.61 per euro (+9.16%). The retail market reflected similar momentum, as the cedi advanced 6.53% against the dollar to close at GH¢12.25 from GH¢13.05, 5.54% against the pound to GH¢16.25 from GH¢17.15, and 5.26% against the euro to GH¢14.25 from GH¢15.00.

Despite this progress, ISSER cautioned that maintaining currency stability will require continued vigilance and sound policy coordination. It emphasized that global economic headwinds, including fluctuating commodity prices, external debt service pressures, and potential delays in donor inflows, could threaten the cedi’s current momentum if not properly managed.

The institute also stressed the importance of diversifying Ghana’s export base, deepening local production capacity, and sustaining fiscal prudence to ensure lasting resilience.

“Medium-term stability of the cedi is critical not only for controlling inflation but also for enhancing investor confidence and supporting sustainable private sector-led growth,” ISSER concluded, reaffirming its call for coordinated fiscal and monetary management as Ghana consolidates its post-debt restructuring recovery.