Ghana Cedi Set to Strengthen in 2025, Buoyed by Remittances and Economic Growth – Black Star Advisors

The Ghanaian cedi is expected to appreciate against major international currencies in 2025, marking a potential turning point after more than two decades of consistent depreciation. According to Adjei Boateng, CFA, Chief Investment Officer at Black Star Advisors, this positive outlook stems from increased remittance inflows and improved economic fundamentals. His comments were made during an appearance on The Point of View with Bernard Avle on Channel One TV on May 12.

Boateng pointed to the recent rebound of the Cedi against the US dollar, euro, and British pound as a sign of renewed market confidence. This performance has sparked optimism that Ghana’s local currency may not only stabilize but also appreciate if current trends continue. He noted that the government’s macroeconomic management has played a vital role in reversing the currency’s long-standing decline.

One key factor contributing to the anticipated strength of the Cedi is the influx of remittances, especially during the final quarter of the year. Boateng highlighted how Ghanaians living abroad typically send money home and spend heavily during the holiday season, injecting much-needed foreign currency into the economy. This seasonal trend, he explained, consistently provides a cushion for the Cedi in the last few months of the year.

Beyond remittances, Boateng noted that the broader economic momentum — including efforts to attract foreign investment and maintain fiscal discipline — is creating a more resilient financial environment. He emphasized that these structural improvements are critical to maintaining long-term stability and would help sustain the currency’s performance beyond temporary seasonal boosts.

Overall, Boateng’s remarks reflect a growing confidence in Ghana’s economic prospects heading into 2025. With both domestic policies and external financial inflows working in the currency’s favor, many stakeholders are hopeful that the Cedi could finally break free from its historical trend of depreciation. If realized, this shift could signal a new era of financial stability and economic progress for Ghana.

Source: Citi newsroom