Get ready for a fact-checking journey that will leave you questioning everything! The story of the Ghana cedi's recovery is a fascinating one, and it's time to set the record straight.
The Cedi's Comeback: A Tale of Two Governments?
The claim that the Ghana cedi's appreciation began in 2024 under the NPP government has sparked a heated debate. But here's where it gets controversial...
While it's true that the cedi experienced a remarkable recovery in 2025, with a 41% appreciation according to Bloomberg, the real story starts a little earlier.
Let's dive into the details and uncover the truth behind this economic turnaround.
The Mahama Administration: A Fresh Start?
As the Mahama administration celebrates its first year in office, it's important to understand the context. Ghana was facing a severe economic crisis, leading to an IMF bailout. One of the most visible signs of this distress was the cedi's sharp decline in value.
So, when the Mahama government took over, all eyes were on the economic indicators, especially the exchange rate. It's no surprise that the administration has received praise for improvements in inflation and the exchange rate.
But here's the twist: the cedi's recovery didn't start with the Mahama government.
The NPP's Role: Unveiling the Truth
Kojo Oppong Nkrumah, a prominent member of the Economy and Development Committee, argues that the cedi's appreciation began during the last quarter of 2024, under the NPP administration. He challenges the narrative that the Mahama government inherited a struggling economy, stating that the exchange rate was actually better than claimed.
Mr. Oppong Nkrumah attributes the cedi's recovery to the NPP's gold-for-reserves program, which created an excess supply and stabilized the currency. He backs up his claims with a Bank of Ghana report.
Bank of Ghana's Take: A Detailed Analysis
The Bank of Ghana's Annual Report for 2024 confirms that the cedi faced pressures in the first three quarters but regained value in the last quarter. This report highlights the impact of the gold purchase program and improved liquidity management on the cedi's appreciation.
Interbank Data: The Proof is in the Numbers
Examining the Bank of Ghana's interbank exchange rate data, we see a clear trend. While the cedi depreciated throughout most of 2024, it began to recover from November 15, 2024, with a selling rate of GH¢15.983. This trend continued into 2025, ending the year at GH¢10.4552 to the dollar.
The Verdict: A Clear Picture
While 2025 saw the cedi's strongest performance, the data shows that the appreciation started in November 2024, during the NPP administration. Kojo Oppong Nkrumah's claim is supported by the Bank of Ghana's data, making it a true statement.
So, who do you think deserves the credit for the cedi's recovery? Is it a case of the NPP setting the stage for success, or did the Mahama administration build upon a foundation already laid? Let's discuss in the comments and share your thoughts on this economic debate!
