Ghana’s efforts to stabilise its local currency, the cedi, could receive a significant boost from the country’s gold and cocoa exports, according to the latest Absa Cedi Report published in May 2025.

The report calls on the government and the Bank of Ghana to strengthen foreign reserves supported by a robust current account surplus, which is essential to shield the cedi from external shocks that have historically destabilised the currency.

The Ghanaian cedi has seen notable improvement recently, appreciating from about GH₵15.50 to the dollar to GH₵12.40, an indicator of growing confidence amid global uncertainties.

Absa’s report attributes this positive trajectory to anticipated steady inflows from the export of gold and cocoa, two cornerstone commodities of Ghana’s economy.

Historically, Ghana’s dependence on commodity exports has been a double-edged sword.

Global price fluctuations and climatic conditions have often affected foreign exchange earnings, impacting the cedi’s stability.

However, the current economic outlook presents a more optimistic scenario, particularly in the gold sector.

Several new gold mines, including the Cardinal-Namdini and Ahafo South mines, are scheduled to begin production within 2025, potentially increasing Ghana’s gold output.

This expansion comes at a strategic moment when gold remains exempt from recent U.S. tariffs that have affected other commodities.

The report highlights that geopolitical tensions and trade uncertainties have intensified the global demand for gold as a safe-haven asset, pushing prices to record highs near USD 3,300 per ounce.

Ghana stands to gain substantially from this trend, potentially improving foreign exchange earnings and reinforcing its external reserves.