During the second quarter of 2025, the Central Bank intervened heavily, injecting over US$2.0 billion into the market—a move that drew concern from the International Monetary Fund (IMF), which urged the regulator to proceed with caution.

As of 29th July 2025, total foreign exchange forward sales for the month stood at US$822.8 million, 53.6% lower than in June. The Bank of Ghana was notably absent from the market on 25th and 29th July, marking its first absence since April.

This reduction in activity contributed to a tighter forex supply and a cumulative 1.7% depreciation of the Ghana cedi against the US dollar following IMF Board approval.

IC Research, a leading financial economic research firm, noted: “In view of the need to avert a protracted over-valued FX rate and close the arbitrage gap in the market, we expect the Bank of Ghana to continue the gradual softening of its FX market presence.”

The firm predicts this strategy will likely result in a non-disruptive rise in the interbank US dollar–Ghana cedi rate to between GH¢10.45 and GH¢11.45 per dollar (midpoint: GH¢10.95/USD) by the end of 2025.

Meanwhile, IC Research highlighted that the Real Effective Exchange Rate (REER) appreciation indicates a likely, though modest, corrective depreciation ahead.

The sharp appreciation of the Ghanaian cedi in the first half of 2025 has created multiple foreign exchange rates, with the interbank rate around mid-GH¢10/USD, while the retail rate hovered near GH¢12/USD.

“Our analysis of Ghana’s FX trend suggests a sharp appreciation of the real exchange rate as the REER index declined by 31.3% over six months to reach 92.7 percentage points in June 2025,” IC Research stated.

The firm noted that the real exchange rate’s sharp appreciation began in April 2025 and intensified through June, aligning with gains in nominal bilateral forex rates.

Source: Joy Business

According to trading results, the local unit posted a modest 1.06% gain, trading between GH¢11.40 and GH¢11.90 to one dollar.

Its year-to-date gain stood at 31.85%, keeping its position as one of the best-performing currencies in the world.

The cedi also appreciated by 0.64% against the pound to close at GH¢15.65/GBP, but slipped 0.73% against the euro to GH¢13.70/EUR.

On the other hand, it depreciated by 1.41% to close at GH¢10.65 to a dollar on the interbank market.

“In line with our expectations, the cedi posted modest stability on the interbank market, firming from GH¢10.80/USD to GH¢10.65/USD amid renewed corporate demand pressures and thin FX [foreign exchange] support”, Databank Research said.

In the retail market, demand pressures weighed on some gains, but quote shading largely kept the cedi range-bound, yielding modest fortnight-end gains.

“Looking ahead, we expect near-term US dollar/Ghana cedi pressures to intensify as global tensions ease and the CBOE Volatility Index (VIX) stabilises, potentially drawing flows away from gold and into US dollar assets”, it added.

Meanwhile, the local currency began trading this week August 18, 2024, unchanged at GH¢11.90 to one US dollar.

Source: Joy Business

This follows the strengthening of the US dollar and renewed local corporate foreign exchange demand.

It however started the week, June 18, 2024, unchanged selling at GH¢15.70 at the forex bureaus.

The US Federal Reserve signalled just a single policy rate cut this year, contrary to market expectations of two cuts. This tight grip on monetary policy sent the American green back index soaring about 100 basis points week-on-week, leaving the cedi reeling against the major trading currencies.

The local currency also shed 2.43% against the pound and 2.87% to the euro last week.

However, the Government of Ghana and its official creditors agreed on a debt rework.

This is expected to pave way for Ghana to receive a disbursement of $360 million, contingent on approval by the IMF board at the meeting scheduled for June 28, 2024.

Analysts believe this will support foreign exchange buffers, improve FX liquidity and help stabilise the weakening cedi in the near term.

This week, however, the local unit is expected to trade sideways due to the strengthening dollar and the prevailing foreign exchange demand.

ALSO READ:

• Afronita, Abigail receive rousing welcome in Ghana after Britain’s Got Talent feat
• Two social welfare officers agreed for elderly patient to be sent back to Gomoa Ojobi – Suspended Director’s report
• GES Director-General offers scholarship to Juaso SHTS best student

However, this week, the cedi is expected to extend its losing run albeit marginally because foreign exchange demand is outstripping supply.

But it began the week stable to the American greenback with the year-to-date depreciation at 17.88%. It is presently going for GH¢14.90 to a dollar on the retail forex market.

Despite the Central Bank not intervening in the spot market, the cedi gained 0.17% week-on-week against the US dollar to end the week’s trades at a mid-rate of 14.83 to one American greenback.

The unit also depreciated 2.90% week-on-week against the pound following the hotter-than-expected UK inflation.

Additionally, the cedi lost 6.03% week-on-week to the euro due to encouraging Eurozone economic indicators.

Ghana’s reserves (excluding encumbered assets) increased by 4% month-on-month to $4.3 billion in April 2024, albeit a 6% month-on-month increase in refined oil import bill.

Currency analysts believe this growth emanated from positive trade balances and the $300 million World Bank inflow in April 2024.

As a result, the Central Bank improved its spot interventions by providing $94 million month-to-date (vs $10 million in Apr 2024) support to help keep the cedi afloat.

ALSO READ:

NLA boss wins overall Public Sector CEO of the Year Award for 2 consecutive years

Aggrieved Deputy Directors of Education kick against new GES service scheme

These are the views of some currency analysts and traders who spoke on condition of anonymity.

According to them, the cedi’s poor performance is due to both endogenous and exogenous factors such as a rising US dollar against Emerging Markets currencies.

April 2024 inflation eased to 25% year-on-year from the March 2024 rate of 25.8%. The inflation cooling was supported by a decline in food inflation to 26.8%.

Some analysts believe the upside risks to inflation, which could induce further upticks in the headline print, may fuel more speculative demand for the US dollar and weaken the cedi which is one of the worst performing currencies in the world this year.

Additionally, the US Federal Reserve is set to announce the April 2024 inflation this week, which could hint at the Fed’s policy rate path during the June 24, 2024, meeting. Also, current US data showed claims for unemployment benefits data rose last week to the highest level in eight months.

These developments indicate softening consumer demand, which may be due to a tight labour market and hence may cool inflation. This will help ease the cedi’s woes a bit.

Cedi depreciates by 17.32% to dollar

Despite the Central Bank selling an estimated $23 million on the spot market last week, the local currency suffered sharp depreciation against the major trading currencies.

On the retail foreign exchange market, the cedi shaved 2.89% week-on-week against the dollar (-17.32% year-to-date) and closed weaker against the Euro (-3.52% week-on-week; -15.20% year-to-date) and pound (-3.03% week-on-week; -16.63% year-to-date).

The cedi is presently selling at GH¢14.90 at the forex bureau. The Bank of Ghana is however quoting one US dollar to GH¢13.01.

ALSO READ:

Man kills girlfriend’s daughter for smashing his ‘yam’ phone

‘I was joking,’ – Bawumia clarifies stance on taxing churches

Bloomberg is predicting more tough times for the cedi as the debt restructuring with Eurobond holders drags.

The cedi has come under intense pressure in the past three weeks, falling heavily against the US dollar and the other major foreign currencies.

It lost more than 1.30% last week to the American greenback.

Checks by Joy Business at some forex bureaus indicate that the cedi is going for GH13.60 to the dollar.

Bloomberg said the worst may not be over for the local currency which is Africa’s third-worst-performing currency this year.

The US-based firm said the cedi could continue to weaken despite the International Monetary Fund’s $3.0 billion bailout following the country’s 2022 debt default.

Though the Bank of Ghana has been intervening in the spot market, the cedi’s performance has been wobbling, raising concerns about the outlook of inflation.

If the cedi continues to depreciate against the dollar and the other major foreign currencies, the present disinflation process could reverse and that would impact on the real sector of the economy.

ALSO READ:

Kuami Eugene involved in accident [Photos+Video]

You are the anchor of NPP’s elections victory – Bawumia tells NPP PCs

After a difficult period in the past two weeks, the cedi regained its footing as it firmed against the major trading currencies.

Although corporate demand exerted some pressure on the local currency, the Bank of Ghana’s marginal $17 million market intervention helped hold the cedi steady.

As a result, it advanced by 0.93% and 1.43% week-on-week versus the pound and the euro but remained unchanged against the dollar at a mid-rate of GH¢13.05 to a dollar on the retail market.

Meanwhile, following the approval of the $300 million facility from the World Bank by Parliament last Friday, March 8, 2024, market watchers and analysts are projecting stability for the local unit in the near term.

The loan facility, which constitutes a 26% grant, has a repayment period of 25 years with a 5-year grace period. It is intended to facilitate the restoration of fiscal sustainability, promote financial sector stability, stimulate private sector development, enhance financial discipline within the energy sector, and reinforce social and climate resilience.

Analysts expect an imminent disbursement of this facility to improve liquidity and strengthen the intervention capacity of the Central Bank.

ALSO READ:

Minority accuses BoG of illegally writing off GH¢48bn gov’t debt

It would have been difficult for Mahama to change Prof Jane…

JB Danquah’s trial: Ursula Owusu’s name pops up in court

It also lost 2.76% against the pound and depreciated significantly by 4.23% to the euro.

The local currency continued to plummet against the major trading currencies following persistent demand pressures.

This is despite the auctioning of $20 million to Bulk Oil Distributors (BDCs) by the Bank of Ghana) at a 30-day forward rate of GH¢12.72 to a dollar. This signaled increasing demand.

Some foreign investors last week repatriated their funds from the coupon payments on their Government of Ghana bonds. This weighed on the local unit.

Analysts believe the development and persistent corporate forex demand are expected to exert downward pressure on the cedi in the near term.

Also, despite a marginal drop in Eurozone inflation on February 24, 2024, the price pressures persisted as the drop was lower than expected.

This scenario led investors to anticipate that the European Central Bank may maintain interest rates at their current highs, a factor analysts believe contributed to the strengthening of the euro against the cedi.

Meanwhile, the cedi started this week gaining marginally against the dollar and the other major foreign currencies.

This follows the suspension of the Foreign Exchange Trading Licenses of Guaranty Trust Bank Ghana and FBN Bank Ghana by the Bank of Ghana over what the regulator described as various breaches of market regulation.

The local currency sold for GH¢13.05 to the American greenback, according to checks by Joy Business at some forex bureaus.

ALSO READ:

Panic as dead body is discovered in front of shop at Kasoa

Actor Oteele shares heartwarming video of wife and kids

Anti-LGBTQ+ Bill: We won’t fight you – Dafeamekpor on Akufo-Addo’s response

Last week, the local currency weakened 1.37% to the American greenback week-on-week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.

Despite the Central Bank selling $18.5 million on the spot market, it could not keep the cedi afloat as it weakened to close at a mid-rate of GH¢12.75 to the dollar. Similarly, the cedi shed 1.10% and 1.47% to the pound and the euro, respectively, on the retail market.

The government during the week paid off coupon obligations on the new bonds, releasing a total of about GH¢5.1 billion to investors.

Nonetheless, the pressure on the cedi continued on Monday, February 26, 2024, with the local currency selling at GH12.85

Analysts believe the improved liquidity of the local unit on the market supported the cedi funding towards foreign exchange demand.

Additionally, investors are pricing in uncertainties regarding rising inflationary pressures.

The analysts expect a similar narrative at the close of this week as the cedi continues to weaken across the major trading currencies.

ALSO READ:

Three police officers killed J.B Danquah Adu, not Daniel Asiedu- Counsel tells court

Tema-Mpakadan train embarks on journey to Ghana [Video]

Guinness World Records broke our contract – Afua Asantewaa

According to Databank Research, this would be influenced by expected inflows from multilateral sources.

The International Monetary Fund is expected to release more funds in 2024 as part of the Fund-support programme, whilst the World Bank is scheduled to release up to $550 million with $300 million for Development Policy Operation (DPO), while $250 million goes for the Ghana Financial Stability Fund (GFSF).

“The annual cocoa loan syndication should also prop up the reserve level and strengthen the external buffer. The successful IMF programme would help anchor cedi’s performance in 2024”, it pointed out.

In January 2024, Ghana secured a creditor agreement to restructure about $5.4 billion of its external debt, paving the way for the release of the second tranche of the IMF deal.

Databank Research said “Progress in the fund-supported programme should improve market sentiments and benefit the local unit”.

“We expect these inflows to strengthen the reserve position and increase the buffer’s capacity to contain external shocks while improving its ability to meet external financing needs. The annual cocoa syndicated loan and further tranche disbursements should further prop up the reserve position”, it added.

Furthermore, it said the US policy tilt may likely ease depreciation pressure on the cedi, adding “The recent US real sector data points to a shift in the US Fed policy stance to cushion the economy. We believe the dovish Fed policy will serve as a tailwind for emerging market currencies like the Ghana cedi.”

The cedi is presently going for GH¢12.45 to one greenback in the retail market.

Its year-to-date depreciation to the dollar is estimated at 2.50%.

Common core curriculum: Science students to skip Core Maths, Integrated Science

This is despite the Bank of Ghana’s foreign exchange (FX) intervention.

The Central Bank sold $7 million on the spot market and auctioned $20 million to the Bulk Oil Distribution Companies in the Forward Forex Auction.

However, the local currency could not hold its ground against the American greenback.

It lost 0.60% week-on-week to the dollar due to demand from the energy sector to settle US dollar debt obligations and the agricultural sector for seasonal restocking.

 The cedi also shed 0.64% week-on-week versus the pound but remained stable against the euro on the retail market.

It is presently going for GH¢12.48 against the US dollar in the retail market, whilst selling at GH¢11.87 on the interbank market

Analysts expect the cedi to be relatively stable this week and during the Chinese holidays that will span from February 9, 2024, to February 15, 2024. 

They believe corporate foreign exchange demand will be lower this week as importers have generally restocked in anticipation of the upcoming Chinese holidays.

ALSO READ:

Tension in Awutu Senya as Akufo-Addo appoints former NDC PC as new DCE

Fatal accident on Amasaman-Nsawam road [Photos]

One dead in accident involving GES Director

This is despite the existence of the International Monetary Fund (IMF) programme which the Board approved the first review programme last Friday, January 19, 2023.

Last week, the local currency ceded its ground to the major trading currencies due to a stronger US dollar irrespective of some foreign exchange liquidity injection. The US dollar index closed 100 basis points stronger to 103.24 after the release of robust US Economic data, suggesting that the Fed will be slow in cutting policy rates.

The Bank of Ghana’s $11.6 million spot market support failed to cushion the cedi as it ended the week’s trades 1.60% weaker to a mid-rate of GH¢12.53/$ on the retail market.

The local currency also dipped 1.12% and 1.11% week-on-week against the pound and the euro on the retail market.

However, analysts expect improved investor sentiment, following the expected inflow of the $600 million bailout package and other budgetary support from the World Bank to help tame the depreciation of the cedi.

Despite the prevalence of corporate demand, they believe forex market sentiment would improve as the cash inflow from the IMF and the World Bank should help increase supply-side intervention and cushion the cedi in the near term.

Meanwhile, the cedi started strongly this week, presently going for GH¢12.43 to one US dollar.

Ghana agrees with bilateral creditors to restructure $5.4bn

Ghana successfully agreed on terms with bilateral creditors on January 12, 2024, to restructure $5.4 billion debt with the Official Creditor Committee.

The World Bank confirmed that the debt rework has unlocked a release of $300mn in budget support from the IDA, which will be considered by the executive board this week.

Nkwanta South: Education Director urges govt to review curfew

GWCL sets records straight on water crisis

Asamoah Gyan gifts Funny Face GH₵ 1000; urges other to support him

The same story emerged on the interbank market.

However, it shed 0.49% and 0.56% week-on-week against the pound and euro respectively.

The foreign exchange market also experienced a decrease in liquidity levels last week as the Bank of Ghana’s supply-side intervention took a pause.

But corporate demand remained elevated after the yuletide.

Ghana and its bilateral creditor committee met on Monday, January 8, 2023.

While awaiting the meeting outcome, a positive conclusion will pave the way for Ghana to receive its expected inflows of $1.15 billion from the International Monetary Fund and World Bank. This will potentially ease the pressure on the cedi.

Additionally, analysts expect the first 2024 FX auction to the Bulk Oil Distribution Companies (BDCs) scheduled for this week to cushion the Ghana cedi.

Cedi to end 2024 with 8.4% depreciation to dollar

IC Research had earlier stated that the cedi would lose about 8.4% in value to the US dollar in the retail market in 2024.

It foresees the mid-dollar rate to the cedi at ¢13.10.

The expected depreciation of the cedi will be far lower than the about 15.2% recorded last year.  

“In full year 2024, we foresee the mid-US dollar Ghana cedi rate at ¢13.1/US dollar (-8.4% annual loss)”.

IC Research added that it expects improved fundamentals in 2024, as a result of expected multilateral inflows and appropriate monetary stance.

Man grows giant boobs after giant snake attack

Jesus film project unveils new innovative animated film ‘Jesus 2025’

According to its November 2023 Summary of Economic and Financial Data, the cedi remained relatively stable between March 2023 and September 2023 until losing ground in October 2023 and November 2023.

In March 2023, the rate of depreciation of the cedi to the American greenback was 22.1%. This is compared with 22.9% in September.

However, in October 2023 and November 2023, the rate of depreciation was 25.4% and 25.8% respectively. The cedi is currently going for about 12.15 in the forex market.

Against the pound and the euro, the cedi has lost 28.6% and 27.7% respectively.

The local currency had come under severe pressure in the last two months due to increased demand for dollar by corporates and importers ahead of the festive season.

Last week, the depreciatory pressures on the cedi continued to heighten amidst limited forex support.

The Bank of Ghana auctioned $20 million to the Bulk Oil Distribution Companies (BDCs), while providing $2 million on the spot market.

However, these central bank supports proved insufficient to hold up the cedi as it weakened at the week’s final trading session.

The cedi lost 0.41% week-on-week against the dollar, 0.41% to the pound and 0.78% against the euro on the retail market. The depreciation was however lower than the preceding week.

Meanwhile, the cedi was expected to remain relatively stable this week, following the recent approval of the $800 million cocoa syndication loan by Parliament, and the $102.6 million African Development Bank budget support programme for Ghana.

• 10 reported dead in gory accident at Ho
• UCC, IET sign MoU to pioneer sustainable engineering programmes
• Hopeson Adorye reacts to dismissal from NPP

According to data from the forex market, the local unit depreciated by 0.41% day-on-day on November 13, 2023.

This means the cedi is now going for ¢12.13 on average to one American greenback in the retail market.

However, the Bank of Ghana is quoting a dollar to ¢11.52 on the interbank market.

Some market analysts are attributing the recent depreciation of the local currency to the Christmas festivities where importers are bringing in more goods onto the market to sell.

However, the expected inflows from the Cocoa Syndication Loan and the $600 million International Monetary Fund would reverse the depreciation. Therefore, any delays will worsen the plight of the local currency.

Presently, the cedi has lost almost 12% in value to the dollar in the retail market since the beginning of the year, whilst it has depreciated by almost 23% in the interbank market.

Cedi’s outlook hinges on cocoa syndication loan, IMF inflows – Report

Analysts had earlier said the outlook of the Ghana cedi now hinges on the timing of the anticipated foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.

According to GCB Capital, this is crucial to the stability of the cedi for the rest of the year.

For the remainder of quarter 4, 2023, many analysts and market watchers believe the inflows of the cocoa syndication loan and the second tranche of the International Monetary Fund bailout package will influence the performance of the cedi.

• Prof Gyampo reacts to appointment of new Supreme Court judges
• Henry Quartey shuts Okudzeto down in Parliament
• Owusu Bempah’s open letter to John Mahama

Demand for US dollar last week outstripped supply despite a slowing inflation. This caused the cedi to fall to levels seen in the second quarter of 2023.

The Bank of Ghana provided $20 million in the 36th bi-weekly foreign exchange auction to the Bulk Oil Distribution Companies, but this was insufficient to slowdown the rising corporate demand.  

The local currency lost marginally (0.46%) to the US dollar last week. Conversely, it gained 0.17% the pound, but remained stable against the Euro.

So far this year, the cedi has lost about 11.6% to the dollar in the retail market and about 22% to the American greenback on the retail market.

The Ghana Statistical Service (GSS) reported a significant drop in inflation for August23 to 40.1%. The cooling print was attributed to decreased food inflation, which dropped from 55% to 51.9%.

Additionally, Fitch Solutions has revised its forecast for the Ghana cedi for the end of the year 2023, predicting it will reach ¢11.40/$ instead of the initial forecast of ¢12.40/$.

 This analysts anticipate the cedi to move gently as risk-off investor sentiment cools off.

• Long-serving NDC MP passes on
• GES announces reopening date for basic schools
• Mahama visits EC headquarters as he tours limited voter registration centers

Last week, the cedi came under renewed pressure despite support from the Central Bank to improve foreign exchange liquidity.

The local currency opened last week at a mid-rate of ¢11.50 pesewas to a dollar and traded steadily, losing 0.65% week-on-week on the retail market. It also depreciated 0.17% and 0.60% week-on-week versus the pound and the euro on the retail market.

In the 35th forex auction for the Bulk Oil Distribution Companies, the Central Bank allotted $20 million at a 30-day forward rate of ¢11.42 pesewas. The current forward rate indicated a 100 basis points increase from the previous auction.

The Bank of Ghana also provided ¢11.5 million dollars on the spot market to help tame demand pressures.

However, this was not enough to stabilise the cedi as local demand caused the local currency to lose ground last week.

 Since January 2023, the cedi has lost about 11.40% to the American greenback on the retail market and 22.1% on the interbank market.

This is coming after the local currency recorded mixed performance last week.

Last week, the cedi held steady during the initial sessions after the Bank of Ghana provided some foreign exchange support, but weakened at the tail end due to rising corporate demand.

The local cedi lost 0.44% week-on-week against the US dollar to end last week’s trade at a mid-rate of ¢11. 48 pesewas on the retail market.

It, however, remained stable against the pound while advancing 1.61% vs the euro.

In the 34th foreign exchange auction for Bulk Oil Distribution Companies (BDCs), the Central Bank provided $20 million at a 30-day forward rate. Also, FX demand poured in from local corporates from the mid-week sessions to the last trading session, which put the local unit on the back foot.

The cedi has lost about 11.5% to the dollar on the retail market since January 1, 2023, and about 21% on the interbank market.

It is presently going for ¢11.48 to one American greenback on the forex market.

The cedi registered significant gain of 27% in value to the American ‘greenback’ in December 2022 to reduce its year-to-date losses. This was largely due to Ghana’s Staff Level Agreement with the International Monetary Fund.

However, with only 13 days into the New Year, the cedi has lost some value, which is worrying to analysts and market watchers.

Checks by Joy Business indicate that the local currency is going for about ¢12.90 on the average at the forex bureaus.

The same could be said about the cedi’s performance against the pound and the euro. It is trading at ¢13.40 and ¢15 to the euro and pound respectively.

Analysts are, however, hopeful that the implementation of the ‘gold-for-oil’ swap programme is expected to tame corporate demand for dollars and provide support for the cedi.

Also, an expected IMF-support programme by March 2023 will help tame the sharp depreciation of the cedi.

The Ghana Cedi ended 2022 as the second weakest currency on the African continent with a year-to-date loss of 38.86% to the US dollar, according to Bloomberg.

Globally, the local currency placed 145^th. The Sierra Leone Leone came 146^th whilst the Argentina Peso and Sierra Lankan Rupee placed 147^th and 148^th respectively.

They were classified as the currencies with the “Worst Spot Returns” by Bloomberg.

The local currency is presently selling just below ¢12 to one US dollar this morning [December 13, 2022] and the rate may even get better before the end of the day.

The cedi also strengthened in value against the pound and the euro. It is presently trading at ¢15.10 and ¢12.50 respectively to the other two major foreign currencies.

Before the expected announcement of the IMF Staff-Level agreement, the local currency had been improving in value against the dollar and the other major foreign currencies.

Investor confidence in the foreign exchange market had soared supporting the cedi’s rally against the US dollar and the other major foreign currencies.

This trend many analysts believe will continue because of expected foreign inflows in the coming months.

A similar situation occurred in Zambia where the kwacha strengthened in value against the dollar, following an announcement of an IMF programme in August 2022.

The kwacha then went ahead to become the best performing currency in Africa so far this year, appreciating in value by 0.40% against the US dollar.

• Ghana Cedi: From worst to best performer against dollar
• Kweku Baako mourns after being hit with sad news
• Fuel prices to go down again from next week; this is why [Listen]