Cedi stays strong despite recent setback
The Ghana cedi remains one of 2025’s best-performing currencies even after losing significant ground since July, according to the Bank of Ghana’s September 2025 Summary of Economic and Financial Data.
Strong Gains, Then a Sudden Reversal
The cedi appreciated by 21 per cent against the US dollar in the first nine months of 2025, underscoring strong macroeconomic fundamentals and robust foreign-exchange inflows earlier in the year.
By May, it had gained an impressive 43 per cent against the dollar from 1 January, followed by 42.6 per cent in June and 40.5 per cent in July.
However, from late July through September, the currency shed about 19 per cent of its value, erasing a significant portion of those earlier gains.
As of mid-September, the cedi was trading at GHS12.15 per dollar on the interbank market, while retail market rates hovered near GHS13.60.
Performance Against Other Major Currencies
The cedi’s movements were not limited to the US dollar:
Euro: up 6.9 per cent, trading around GHS14.23.
British pound: up 11.8 per cent, also at roughly GHS14.23
Despite the mid-year volatility, these figures underscore the cedi’s resilience compared to many emerging-market currencies.
BoG Perspective and Drivers
Opening the Monetary Policy Committee (MPC) meeting on 15 September 2025, Bank of Ghana Governor Dr Johnson Asiama attributed the recent pullback to seasonal trade pressures and weaker remittance inflows, both common in the second half of the year.
“Even with the correction, the cedi remains one of the strongest currencies globally in 2025,” Dr Asiama emphasised.
Outlook: Cautious Optimism
Market analysts expect modest near-term stability as sentiment improves on the back of the World Bank’s USD360 million concessional loan and continued forex interventions.
Attention now turns to the BoG’s upcoming MPC decision and potential US Federal Reserve rate cuts, which could influence dollar-cedi dynamics in the final quarter.
Economists caution that while strong reserves and trade surpluses provide support, Ghana must remain vigilant.
Sustaining the cedi’s hard-won reputation will require continued fiscal discipline, export growth and proactive monetary management as global conditions evolve.
