Ghana’s cedi has been named the world’s best-performing currency so far in April, according to data compiled by Bloomberg.
The currency’s sharp appreciation has played a key role in helping the country ease inflationary pressures, pushing the inflation rate to an eight-month low.
Consumer prices in Ghana rose by 21.2% in April, down from 22.4% in March, Government Statistician Alhassan Iddrisu announced in Accra. Monthly inflation stood at 0.8%.
The strengthening of the cedi has significantly reduced the cost of imports, contributing to the overall drop in inflation.
The cedi has appreciated by nearly 16% against the US dollar since the beginning of April, outpacing all other global currencies during the period. This unexpected rally has been instrumental in driving down non-food inflation, which eased to 17.9% from 18.7%.
Food inflation also declined, falling to 25% from 26.5% the previous month.
Despite the progress, analysts believe the Bank of Ghana is unlikely to lower interest rates at its upcoming meeting. In March, the central bank surprised markets with a 100 basis-point hike, raising the policy rate to 28% in a bid to tighten liquidity and curb inflation.
Agyapomaa Gyeke-Dako, an economist at the University of Ghana Business School, noted that the central bank may adopt a wait-and-see approach as it monitors further inflation trends. She also warned of persistent risks, particularly from recent increases in utility prices.
Mark Bohlund, senior credit analyst at REDD Intelligence, echoed those concerns, adding that loosening monetary policy too soon could reverse recent gains and reignite inflation.
The central bank has projected inflation to fall to around 16% by the end of 2025 and return to the 6%–10% target band by the second quarter of 2026.
The International Monetary Fund expects inflation to decline further, citing the government’s fiscal reforms and commitment to stabilizing the economy.
Stéphane Roudet, the IMF’s mission chief to Ghana, expressed confidence that inflation will continue to fall in the coming months.
The cedi’s strong performance marks a rare bright spot for Ghana, which has been grappling with high inflation and currency volatility in recent years.
The Bloomberg recognition signals renewed investor confidence and offers hope for further economic stability if current trends hold.
