The Ghanaian cedi has achieved a remarkable turnaround, appreciating by an impressive 24.1% against the US dollar in the first five months of 2025. This performance marks a dramatic recovery from the 5.3% depreciation recorded in the first quarter of the year, signalling renewed confidence in the local currency.
According to data from the Bank of Ghana (BoG), the cedi was trading at GH¢11.85 to the dollar on the interbank market as of May 2025. April alone saw a robust gain of 3.9% against the US dollar, reinforcing the currency’s recovery trajectory.
The cedi’s strength extended beyond the dollar, with significant gains recorded against other major international currencies. By May, it was appreciated by 14.1% against the euro, trading at GH¢13.33, and by 16.2% against the pound sterling, trading at GH¢15.74 on the interbank market.
In the retail market, the cedi’s performance has been equally strong. Last week, it registered a week-on-week gain of 2.3% against the dollar, bringing its year-to-date gain to 17.7%. Against the pound and the euro, it is appreciated by 3.5% and 3.7%, respectively.
The BoG attributed this robust performance to a strategic injection of US$425.50 million into the retail forex market, aimed at stabilizing the currency and addressing speculative pressures.
Market analysts are optimistic that this sustained intervention, coupled with a broader economic stabilization program, will further bolster the cedi’s resilience. The currency’s appreciation not only signals economic recovery but also provides relief to businesses and households grappling with imported inflation.
As the cedi continues to gain momentum, stakeholders remain hopeful that this upward trend will strengthen Ghana’s macroeconomic stability and restore investor confidence in the local economy.
Story by: Mercy Addai Turkson #ahotoronline.com
