Cedi gains 5% against dollar
The Ghana cedi staged a remarkable comeback last week, gaining about 5 per cent against the US dollar on the interbank market, one of its strongest weekly performances since the third quarter of 2025.
Data from major commercial banks showed that between 6 and 10 October 2025, the cedi strengthened sharply, reversing much of the depreciation it suffered earlier in the year.
This marks the first time since the third quarter that the local currency has posted such a strong gain.
According to the World Bank’s 2025 Africa Pulse Report, the cedi depreciated by about 14 per cent in Q3, amid pressures from external debt repayments and high import demand.
However, from January to August 2025, the currency appreciated by 21 per cent, reflecting improved macroeconomic management and strong export earnings.
Drivers of the Cedi’s Rally
One major factor was the BoG’s decision to shift its forex interventions from weekly auctions to spot sales, allowing banks to access dollars more flexibly and transparently.
The Ghana Association of Banks (GAB) said the move has improved market efficiency and boosted liquidity.
GAB’s Chief Executive, John Awuah, explained that the currency’s recovery reflects “recent market developments and the Bank of Ghana’s decision to review the Net Open Position for commercial banks,” which has strengthened FX discipline in the banking sector.
The World Bank also noted that Ghana’s currency performance has been buoyed by tight fiscal and monetary policies, rising export revenues and improved market sentiment.
With a year-to-date gain of about 20 per cent, the cedi ranks as Africa’s best-performing currency for the first eight months of 2025.
Market Performance
As of 12 October 2025, commercial banks were selling the dollar at around GHS12.30 for retail transactions, while interbank trades were quoted between GHS11.95 and GHS12.05. On the forex bureau market, rates ranged between GHS13.20 and GHS13.50 per dollar.
Background: BoG’s Gold-for-FX Strategy
Earlier this month, BoG Governor Dr Johnson Asiama announced plans to begin foreign exchange intermediation under the Domestic Gold Purchase Programme.
The central bank intends to sell up to USD1.15 billion in October through twice-weekly spot auctions open to all licensed banks.
Dr Asiama said the initiative aims to deepen the interbank FX market, enhance price discovery and smooth exchange rate volatility, all while maintaining transparency and neutrality. He emphasised that BoG’s overarching goal remains to stabilise the cedi, promote fair market access and sustain liquidity within the banking system.
