Strong exports, remittances driving Cedi appreciation – UMB Capital Finance Head

The Ghanaian cedi is appreciating against major currencies. This trend is due to strong exports, rising remittances, and coordinated fiscal and monetary policies. Nelson Cudjoe Kuagbedzi, Head of Finance at UMB Capital, shared these insights on the Citi Breakfast Show.

Between January and late May 2025, the cedi rose from GHS 15.00 to GHS 10.20 per USD. This represents a cumulative gain of about 32%. Kuagbedzi attributed this performance to traditional exports like gold and cocoa. He also noted that non-traditional exports are performing well.

Increased remittance inflows have strengthened Ghana’s international reserves. By the end of April, reserves reached about $10.7 billion. This amount covers approximately 4.7 months of imports.

Kuagbedzi discussed the dynamics of the foreign exchange market. He emphasized that demand and supply play crucial roles. Currently, the Bank of Ghana has enough forex to meet demand for international transactions.

He praised the collaboration between the Bank of Ghana and the Ministry of Finance. This partnership helps create a stable macroeconomic environment. Kuagbedzi highlighted that both monetary policy and fiscal strategies contribute to this stability.

As of June 2, 2025, there are expectations for further gains in the cedi's value as Ghana awaits a $370 million IMF tranche to boost reserves.