Exchange rate stability Ghana’s economic game changer – Prof. Agyepomaa Gyeke-Darko

By: Eugene Dogbatse Atsu
Ghana’s economy is showing clear signs of recovery, with experts pointing to exchange rate stability as the key force driving the turnaround.

Speaking on Do Economic Narratives Match Real-Sector Outcome, Prof. Agyepomaa Gyeke-Dako noted that the country has moved “from managing crisis to managing recovery,” following significant gains in macroeconomic stability.

According to her, while stability at the macro level has largely been achieved, the real challenge now lies in ensuring that the benefits are fully felt by households and businesses.

“The transmission of this success to households and firms is still evolving, even though some firms are already recording strong performance,” she explained.

She described the exchange rate as the “game changer,” emphasizing that its recent stability has reshaped Ghana’s economic outlook.

For the first time since 1994, the cedi has recorded an appreciation, with depreciation dropping sharply from about 45% in 2025 to around 27%in 2026.

This improvement, she said, has been largely driven by the Bank of Ghana’s gold purchasing programme, which has boosted a lot of reserves to nearly six months of import cover, strengthening confidence in the economy and reducing speculative activities.

The stable exchange rate has also played a critical role in easing inflation. Ghana’s inflation rate has declined significantly to about 3.2 percent, marking a major relief after years of persistent price increases.

Prof. Gyeke-Dako further credited the Bank of Ghana’s open market operations for supporting the recovery process.

Global risks, which she noted that, the conflict between Iran and the United States, which has disrupted key oil routes like the Strait of Hormuz, would have had a harsher impact on Ghana if the exchange rate were unstable.

“But we are not feeling that level of pain, largely because the exchange rate has held firm,” she said.

Meanwhile, Yaw Appiah Lartey, Partner – Deloitte Africa, stressed the importance of policy mechanisms in sustaining the gains.

He explained that while economic stability is becoming evident, it takes time for reforms to fully reflect across all sectors.

“The worst is behind us, and we are now beginning to see the impact of economic reforms within the system,” he noted.

The outlook suggests watchful confidence, as Ghana’s economic recovery strengthens, anchored by a stable exchange rates and improved policy credibility.