Investors confidence in government responsible for Cedi’s gain against Dollar – Economist
An economist and lecturer at the Methodist University, Dr. Alex Amo Baffour has attributed the cedi’s significant gain against the dollar to the confidence investors have in the new government.
According to him, the economic programmes and measures introduced by the John Mahama administration have contributed to the cedi’s strong performance against the dollar.
The Ghana cedi made a remarkable gain against the US dollar on April 29, 2025, selling at GH¢15.40 to one dollar in the retail market.
This came after it traded at GH¢15.75 to one US dollar on April 28, 2025. The local currency consequently recorded a year-to-date gain of 3.50% against the world’s most important currency.
It is unclear what exactly accounts for the sudden impressive performance of the cedi, but some dealers attribute it to a substantial reduction in demand for the US dollar. Others point to the nearly US$10 billion in reserves built up by the previous Bank of Ghana management team.
Speaking in an interview with New York-based Adinkra Radio, Dr. Dr. Alex Amo Baffour explained that capital flight by investors under the previous Akufo-Addo government, due to economic mismanagement, contributed to the cedi’s earlier depreciation.
He noted that investors are now convinced the economy is being better managed and are therefore injecting their funds into the country, which is strengthening the cedi.
“Now, calm has returned because of the measures being implemented by this new government. Investor confidence in the Mahama administration is at an all-time high. The sustainability of the cedi’s recovery depends on the programmes introduced by the government. Confidence in President Mahama has done the trick,” he said.
“If you look at the budget, the government was very clear about its policies. The budget was accepted by both investors and the citizenry. That is helped greatly and there’s no panic. In this current time, nobody will save his or her Dollars, it would be used for trading to gain some profit.”
