The recent depreciation of the Ghana cedi against major international currencies is a “normal correction” following its “aggressive” appreciation earlier in the year, economist Professor Godfred Bokpin has explained.
Speaking on Joy FM’s Super Morning Show today, September 16, the Professor of Finance at the University of Ghana Business School assured that the situation is “not out of control” and urged Ghanaians not to panic.
According to him, the cedi’s rapid gains in the first half of the year had “jumped the gun” and gone “far ahead of the recovery,” making a correction inevitable.
He described the cedi’s performance in the first half of 2025 as unprecedented, noting that by the end of June the currency had appreciated by 42.6% against the US dollar, 30.3% against the British pound, and 25.6% against the euro. This was in sharp contrast to the same period in 2024, when the cedi depreciated by 18.6%, 17.9%, and 16.0% respectively.
Prof. Bokpin’s analysis comes amid a mix of positive economic indicators. Provisional data from the Ghana Statistical Service shows that the economy grew by 6.3% in the second quarter of 2025, up from 5.7% in the same period last year. He explained that growth is “broadening” across sectors but cautioned that it is still emerging from “a state of low productivity” and has yet to trigger a structural transformation.
The ICT sector was identified as the main driver of growth, expanding by a robust 21.3% in Q2.
On inflation, Prof. Bokpin pointed to a sharp decline from 23.8% in December 2024 to 11.5% in August 2025—the lowest rate since October 2021. This, he said, reflects the effectiveness of fiscal consolidation measures, with 2025 marking the eighth consecutive month of disinflation.
He further explained that the cedi’s sharp appreciation earlier in the year had encouraged speculative activity, which is now unwinding. The Bank of Ghana, he added, has been “stepping strongly” to stabilise the currency.
Prof. Bokpin concluded that the current depreciation is a natural market correction, not a sign of economic failure. He expressed confidence that the cedi will stabilise as government continues to strengthen fiscal discipline and maintain disinflation.
Source: David Apinga
