Fiscal Performance - The fiscal performance for the 2025 fiscal year significantly exceeded expectations, with an overall fiscal deficit of 1.0% of GDP, better than the target of 2.8% [1] - The primary fiscal surplus was 2.6%, surpassing the planned surplus of 1.5% [1] - The cash-based overall fiscal deficit narrowed to 3.1% of GDP, better than the target of 3.8% [1] - The cash-based primary fiscal surplus was 0.5%, contrasting with the previously expected deficit of 0.5% [1] Debt Reduction - The total public debt is set to decrease by 82.1 billion Ghanaian Cedi, from 726.7 billion Cedi (61.8% of GDP) in December 2024 to 641.0 billion Cedi (45.3% of GDP) by December 2025, marking one of the largest reductions in the country's history [1] Economic Growth and Inflation - The actual GDP growth for the first three quarters of 2025 was 6.1% year-on-year [1] - Inflation rates have decreased for 13 consecutive months, dropping from 23.5% in January 2025 to 3.8% in January 2026, a decline of 19.7% [1] Interest Rates - The 91-day treasury bill rate fell from 27.7% at the end of 2024 to 11% by December 2025, with a further reduction to 6.5% expected by February 2026 [2] - The average commercial bank lending rate decreased from 30.25% in 2024 to 20.45% in 2025 [2] Private Sector Credit and Currency Strength - Private sector credit increased by 17.1 billion Ghanaian Cedi in 2025, with expectations for continued growth in 2026 [3] - The Ghanaian Cedi appreciated against the US dollar by 40.7% by the end of December 2025, reversing a 19.2% depreciation in 2024 [3] - The Cedi also strengthened against the British Pound by 30.9% and the Euro by 24.0% [3]

Core Insights - The International Monetary Fund (IMF) reports that the Ghanaian cedi is projected to be the best-performing currency in Africa by 2025, with an expected appreciation of over 40% against the US dollar [1]. Group 1: Currency Performance - The Ghanaian cedi is confirmed to have the highest appreciation rate among over 20 African currencies tracked by the IMF for the year 2025 [1]. - Previously, several international news agencies and financial institutions ranked the cedi as the fourth strongest currency in Africa, but the IMF's comprehensive assessment has elevated its status [1]. Group 2: Economic Factors - The strong performance of the cedi is attributed to a combination of policy measures implemented by the Bank of Ghana and the steady progress of economic reform plans supported by the IMF [1]. - By the end of 2025, the Bank of Ghana's international reserves are expected to reach nearly $14 billion, providing a solid buffer for currency stability [1].

Core Insights - The Ghanaian currency, the Cedi, has continued its upward trend in the interbank market, particularly against major currencies like the US Dollar [1] - As of October 16, 2023, the exchange rate of the Ghanaian Cedi to the US Dollar is approximately 10.62 Cedis, a significant appreciation from earlier in the month when it surpassed 12 Cedis [1] Currency Performance - The Cedi has shown strong performance against the US Dollar, indicating a recovery in the currency's value [1] - The appreciation of the Cedi reflects a positive shift in the currency's market dynamics, which could influence investor sentiment and economic stability in Ghana [1]