Cedi to remain broadly stable in coming months; gained 30% against dollar since January 1

• Posted on July 16, 2025July 16, 2025
• by Nana Kwesi Coomson
• Comment

The Ghana cedi is anticipated to remain broadly stable in the coming months.

According to Fitch Solutions, this reflects robust external buffers, with international reserves having risen to a near-record US$7.9 billion in April 2025, equivalent to around 4.0 months of import cover.

The UK-based firm also said that the build-up in reserves has been supported by strong exports and historically high gold prices amid heightened geopolitical risks and central bank gold purchases.

“Combined with the authorities’ stated preference for a stronger exchange rate, we expect that the Bank of Ghana (BoG) will keep the currency broadly stable over the remainder of the year, helping to limit imported inflation”, it alluded.

Meanwhile, the cedi has appreciated by about 30% to the US dollar since January 1. 2025.

It is presently going for GH¢12.00 to one American dollar in the retail market.

On the interbank market, the local currency is selling GH¢10.40.

In a related development, the cedi closed June 2025 at GH¢10.35/US dollar on the interbank market (-0.9% month-on-month) after a sharp correction-driven rally in the prior two months.

Amidst a surge in foreign exchange demand from offshore investors, corporates, and local banks adjusting to the new currency-matched Cash Reserves Ratio rules, the Bank of Ghana increased foreign supply by 84.4% month-on-month to US$1.7 billion to anchor the US Dollar Ghana cedi pair, albeit changing from 2-day to 7-day forward sale and tapering the volumes in the final 2-weeks.