In recent months, the Ghanaian cedi has gained more than 33% versus the US dollar, making it the best-performing currency in the world. Investor excitement over Ghana’s $3 billion IMF bailout—a $600 million first payment is anticipated soon—is what is driving the spike.
The news was welcomed by President John Dramani Mahama, who hailed it as “a sign of renewed trust in Ghana’s economic future” and emphasised the significance of strong leadership and international collaborations.
More than 150 international currencies, including the US dollar and the euro, have lost ground to the cedi. The IMF agreement, rising investor confidence, and robust remittance inflows are credited by analysts.
Government Statistician Alhassan Iddrisu made the announcement in Accra on Wednesday that consumer price inflation decreased from 22.4 percent in March to 21.2 per cent in April. Because of the cedi’s strength, monthly price rises decreased to 0.8%, mostly due to declining import costs.
Food inflation also decreased, falling from 26.5 percent to 25 percent, while non-food inflation decreased from 18.7 percent to 17.9 percent. Iddrisu acknowledged, “A rally in the cedi reduced the cost of imports,” attributing much of the recent inflation respite to the currency’s strengthening.
The cedi has outperformed all other currencies in terms of gains versus the US dollar from the beginning of April, according to Bloomberg statistics, which has increased consumer confidence and reduced pressure on cost of imported goods.
NKONKONSA.com
