Ghana’s economic recovery is gathering momentum, thanks in large part to the remarkable performance of its currency, the Ghanaian Cedi, which has been hailed as the world’s best-performing currency since the start of April.

In the country’s most recent fiscal month, the strengthening Cedi helped ease import costs, bringing welcome relief to consumers and pushing inflation downward.

According to the Ghana Statistical Service, the country’s consumer price index fell to 21.2% in April, down from 22.4% in March, marking the fourth consecutive month of falling inflation.

Government Statistician Alhassan Iddrisu shared the update with reporters on Wednesday in Accra, noting that the slowdown in non-food prices, which eased to 17.9% in April from 18.7% in March, was largely tied to the decline in import expenses.

“The drop in inflation is following a pattern that has been persistent since the current president John Mahama assumed office,” Iddrisu said, highlighting the broader economic context behind the numbers.

Data from the Ghana Statistical Service shows that inflation had already eased in March to 22.4% from 23.1% in February, shortly after the Bank of Ghana surprised markets with a 100 basis-point hike in its benchmark interest rate, pushing it to 28%.

However, for April, it’s the currency’s stellar performance that takes center stage.

Reports indicate that the Ghanaian Cedi strengthened from 15.49 per dollar in March to 15.46 per dollar in April, while other African currencies like the Tunisian Dinar, Moroccan Dirham, and Seychellois Rupee also posted stronger values.

Bloomberg figures reveal that the Cedi has surged by around sixteen percent against the dollar since the beginning of April, cementing its position as the best-performing currency globally over the period.

Despite the positive inflation trend, experts caution that the central bank is unlikely to cut rates just yet.

Agyapomaa Gyeke-Dako, a senior lecturer and economist at the University of Ghana Business School, observed that the central bank will likely hold its current course, noting, “The central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices.”

She added, “In order to mop up any excess liquidity, the central bank is still looking for additional proof of a slowdown in price growth following its unexpected 100 basis-point increase in March to 28%.”

Inflation in Ghana has remained above 10% since September 2021, exceeding the central bank’s target range, due to a debt crisis that weakened the Cedi and made imports more expensive.

Looking ahead, the Monetary Policy Committee projects inflation will ease to around 16% by the end of this year and return to the target range of 6% to 10% by the second quarter of 2026, offering hope that the country’s economic recovery will stay on track.