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The Ghanaian cedi has commenced 2025 with an average depreciation of 2% against major trading currencies, highlighting ongoing difficulties in stabilizing the local currency.
According to the Bank of Ghana’s latest Summary of Economic and Financial Data, the cedi weakened by:
2.4% against the US dollar
3.0% against the Euro
0.8% against the British pound
This places the exchange rates at:
GHS 15.06 per dollar
GHS 15.69 per Euro
GHS 18.55 per pound
However, rates in the forex market are higher, with the US dollar trading between GHS 15.90 and GHS 16.20, further driving up costs for imports and external transactions.
The cedi’s depreciation is primarily attributed to:
- Increased demand for foreign exchange, particularly for imports and external debt servicing.
- Tightening global financial conditions.
- Persistent fiscal imbalances.
- High inflation.
To address these challenges, the government and central bank are expected to prioritize:
- Boosting foreign exchange reserves to ease market pressures.
- Promoting export diversification and reducing reliance on imports.
- Implementing prudent fiscal policies to stabilize the economy and strengthen the currency.
The cedi’s performance will remain a key indicator of Ghana’s economic health as the country seeks to navigate its financial challenges throughout 2025.
