Cedi strength driven by global tailwinds, local discipline – Joe Jackson

The CEO of Dalex Finance, Joe Jackson, has attributed the recent appreciation of the Ghanaian cedi to a convergence of favourable global conditions and Ghana’s disciplined internal economic policies, stating that “the stars aligned for Ghana.”

Speaking in an in-depth analysis on Citi FM’s Eyewitness News on Friday, May 9, Jackson said the cedi’s improved performance was the result of a combination of international economic shifts and deliberate domestic policy decisions that put Ghana in a strong position.

“The situation is good. We are in a good space,” Jackson remarked. “We are in a good space because the stars aligned for us and, better still, because of our internal commitments and discipline that we’ve shown this year—we were able to take advantage when the stars aligned.”

External Forces Driving Cedi Appreciation

Jackson highlighted three key global factors that contributed to the cedi’s recent strength:

Depreciation of the US Dollar: Triggered by trade tensions during the Trump administration—particularly with China—the U.S. dollar weakened against major global currencies, which improved the relative value of the cedi.

Decline in Oil Prices: The global economic slowdown, partly due to the trade war, reduced demand for petroleum products. As Ghana’s largest import, cheaper oil eased the pressure on foreign exchange reserves.

Rising Gold Prices: Amid market volatility, investors turned to gold as a safe haven, driving prices up. Ghana directly benefited from this shift. “The icing on the cake,” Jackson noted, was the appreciation of Ghana’s gold reserves, which are held by the central bank.

Ghana’s Strategic Internal Response

Beyond these global developments, Jackson praised the Bank of Ghana for its proactive approach, including efforts to increase the country’s gold reserves and retain more value from gold production.

“First of all, our central bank has consistently sought to increase its gold reserves. By doing that, it was taking advantage of the stars aligning,” he said. “In the last eight years, gold has consistently outperformed the dollar—by over 100%.”

He also underscored the importance of transparent and accountable management of gold policies, which has helped Ghana derive more value from its natural resources.

“The issue of goldbod and its implementation possibly in transparent and an accountable manner meant that we were going to retain far more value in our gold…So there was that internal commitment to prudent economic behaviour,” Jackson explained.