Cedi Erases Q3 Losses as Currency Rallies 16% in October
The cedi has staged a strong comeback against the U.S. dollar in the first half of October 2025, reversing the losses recorded in the third quarter of the year.
Data compiled from Bloomberg News and the World Bank indicate that the cedi depreciated by about 14% in Q3 2025, slowing its earlier appreciation from over 40% at end-July to roughly 21% by end-September.
However, new data from commercial banks show that the cedi’s year-to-date (YTD) appreciation now stands at 37%, implying a gain of about 16% since the start of October. This performance effectively offsets the third-quarter losses.
Between October 13 and 17, the cedi appreciated by approximately 9.5% against the dollar — one of the strongest weekly gains recorded by the local currency in recent history.
Bank of Ghana Slows Interventions
Market sources say that the Bank of Ghana (BoG) has moderated its direct dollar interventions, even as liquidity conditions in the interbank market remain robust.
Some commercial banks have attributed the cedi’s rally to improved foreign exchange (FX) management and enhanced enforcement of forex regulations.
A major factor driving this rally is the BoG’s policy shift from weekly FX auctions to spot sales, a move the Ghana Association of Banks (GAB) says has enhanced market efficiency.
“The cedi’s rebound reflects recent market developments,” said John Awuah, Chief Executive of GAB, linking the performance to the central bank’s review of the Net Open Position (NOP) for commercial banks.
Tight Policies and Rising Confidence
Market analysts note that the currency’s strength is being supported by a mix of tight fiscal and monetary policies, rising export receipts, and improved investor confidence.
They maintain that given the ongoing market reforms, the cedi’s strong run could continue through the rest of the year.
Market Quotes
Checks indicate that some commercial banks are selling the U.S. dollar at GH¢10.95, while interbank rates range between GH¢10.70 and GH¢10.85.
On the forex bureau market, as of October 12, 2025, rates stood between GH¢12.00 and GH¢12.40 to the dollar.
Background
Earlier this month, the BoG announced the commencement of foreign exchange (FX) intermediation under its Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion in October through twice-weekly, price-competitive spot auctions open to all licensed banks.
Governor Dr. Johnson Asiama explained that the initiative seeks to deepen the interbank FX market, improve price discovery, and reduce exchange rate volatility while maintaining transparent and market-neutral operations.
“The overarching goal remains to stabilise the exchange rate, ensure a level playing field, and sustain liquidity within the banking system,” Dr. Asiama stated.
