Joe Jackson: Cedi strength driven by global tailwinds, local discipline

Joe Jackson, CEO of Dalex Finance, discussed the recent rise of the Ghanaian cedi. He attributed this to favorable global conditions and Ghana’s disciplined economic policies. He stated, “the stars aligned for Ghana.”

In an analysis on Citi FM’s Eyewitness News, Jackson explained that the cedi's improvement resulted from international shifts and domestic policy decisions. He expressed optimism about the situation, saying, “We are in a good space.”

Jackson identified three global factors driving the cedi's strength:

1. Depreciation of the US Dollar: Trade tensions during the Trump administration weakened the dollar against other currencies. This improved the relative value of the cedi.

2. Decline in Oil Prices: The global economic slowdown reduced demand for oil. As oil is Ghana’s largest import, cheaper prices eased pressure on foreign exchange reserves.

3. Rising Gold Prices: Investors turned to gold amid market volatility, increasing its price. Ghana benefited directly from this trend.

Jackson praised the Bank of Ghana for its proactive measures. These include efforts to increase gold reserves and retain more value from gold production.

He noted that over eight years, gold has outperformed the dollar by over 100%. Transparent management of gold policies has also helped Ghana gain more value from its resources.

Jackson emphasized that prudent economic behavior was crucial during this period of opportunity.