The Ghana cedi came under renewed pressure last week, posting significant losses across major trading currencies amid strong corporate demand and limited foreign exchange inflows.
According to market data, the cedi depreciated by 6.58% against the US dollar, 6.20% against the British pound, and 6.51% against the euro on the interbank market. It closed the week at GH¢11.40/$, GH¢15.40/£, and GH¢13.34/€, respectively.
In the retail (forex bureau) market, the cedi also weakened, falling by 5.80% against the dollar, 5.44% against the pound, and 4.53% against the euro. Mid-market rates stood at GH¢12.50/$, GH¢16.55/£, and GH¢13.35/€ by the close of trading.
On a month-to-month basis, the local currency declined by 7.89% against the dollar, slashing its year-to-date gains to 28.95%, down from the 40% recorded in July.
Causes of the Cedi’s Weakness
In its weekly market analysis, Databank Research attributed the cedi’s sharp decline to strong corporate demand for foreign currency, coupled with weak FX liquidity and the continued strength of the US dollar.
“Strong corporate demand pressures, amid thin FX support and a resilient US dollar, intensified nominal depreciations of the cedi,” the report noted.
Weaker regulatory flows and tightened forex conditions also contributed to the pressure on the currency.
Outlook: Pressure Likely to Continue
Looking ahead, analysts expect further strain on the cedi in the short term, as importers begin to stock up ahead of the festive season.
Databank Research warned: “Mounting bids are expected in the near term as importers prepare for the festive season, sustaining pressure on the local currency. BoG’s tighter measures to curb FX leakages may take time to take effect.”
However, a potential rebound could be on the horizon if Ghana secures anticipated inflows, including $4 billion in support for cocoa purchases, and if expectations of a U.S. Federal Reserve rate cut materialise.
Current Market Rate
As of Monday, September 1, 2025, the cedi was trading unchanged at GH¢12.70 to the US dollar, with a mid-rate of GH¢12.50.
