Cedi Posts Strongest Rally in Years, Up 24.1% Against Dollar in 2025
Ghana’s cedi has staged a sharp recovery in 2025, appreciating 24.1 percent against the US dollar in the first five months of the year, as foreign exchange inflows and central bank support helped to stabilise the local currency following a period of sharp volatility.
Data published by the Bank of Ghana in its May 2025 Summary of Financial and Economic Data shows the cedi traded at GHS 11.85 to the US dollar on the interbank market in May, reversing a 5.3 percent loss recorded during the first quarter. The gains mark the strongest year-to-date performance by the currency in recent years and have provided some respite for policymakers navigating persistent inflationary pressures and external vulnerabilities.
The cedi also recorded broad-based gains across other major currencies, appreciating 14.1 percent against the euro to GHS 13.33 and 16.2 percent against the pound sterling, which was quoted at GHS 15.74 on the interbank market.
In weekly terms, the local unit gained 2.3 percent against the dollar last week, lifting its year-to-date appreciation in the retail market to 17.7 percent.
The appreciation comes on the back of a $425.5 million injection into the retail foreign exchange market by the Bank of Ghana over the review period, as part of efforts to shore up the cedi and stabilise price levels.
Analysts say the turnaround in the cedi’s fortunes reflects a combination of monetary tightening, improved market confidence, and stronger-than-expected external inflows, including disbursements under Ghana’s IMF-supported economic reform programme.
why can’t Africa go for a strong partnership among themselves. I have never seen my president travelling to most of the African countries than the US and Europe. Hence our weaknesses. let’s trade among ourselves. so that the lineage of poverty would be broken