Cedi up 40.7% against Dollar in 7 Months
The Ghana cedi has recorded an impressive appreciation of 40.7 percent against the US dollar in the first seven months of 2025, underscoring renewed stability in the country’s macroeconomic environment and improved foreign exchange inflows.
According to the Bank of Ghana’s July 2025 Summary of Economic and Financial Data, the local currency traded at GHS10.45 to USD1 on the interbank market as of the end of July, marking one of its strongest year-to-date performances in recent history.
Central bank data shows that in May 2025, the cedi appreciated by 43 percent year-to-date against the greenback.
This was followed by a 42.6 percent year-to-date gain by the end of June, highlighting the currency’s sustained momentum in the second quarter.
Cedi Gains Against Other Major Currencies
Beyond the US dollar, the cedi also strengthened significantly against other major international currencies. In June, it appreciated by 24.2 percent against the euro, closing at GHS12.25 on the interbank market.
Similarly, the cedi gained 31.2 percent in value against the British pound, trading at GHS14.02 per pound as of the end of June. These gains reflect broader confidence in Ghana’s foreign exchange market, improved balance of payments indicators, and robust export receipts.
Recent Performance and Market Dynamics
In the last two weeks of July, the cedi remained relatively stable, reflecting minimal fluctuations despite pressure on emerging market currencies globally. It closed at a midrate of GHS10.48 per US dollar on the interbank market, a marginal depreciation of 0.47 percent compared to the previous fortnight.
On the retail forex market, however, the currency was exchanged at a midrate of GHS12.00 to the dollar, highlighting the traditional premium associated with cash transactions and speculative pricing in the informal market.
Despite these short-term fluctuations, the cedi’s year-to-date appreciation currently stands at 29.38 percent, reinforcing investor confidence and signaling the effectiveness of policy interventions undertaken by the Bank of Ghana and the Ministry of Finance.
Drivers of the Appreciation
Analysts have attributed the cedi’s strong performance to a combination of improved foreign exchange inflows from gold, cocoa, and oil exports; a positive trade surplus of USD5.57 billion recorded in the first half of the year; growing foreign investor confidence following Ghana’s return to a structured debt sustainability path under the IMF program and a more disciplined monetary policy stance that has helped reduce speculation and lower inflation.
The Bank of Ghana has also played a key role by maintaining active interventions in the forex market, including forward auctions and spot sales, to smooth volatility and build overall confidence.
