The Ghana cedi has made a significant recovery in October 2025, reversing all losses experienced in the third quarter and reinstating investor confidence in the local currency.
According to information from Bloomberg and the World Bank, the cedi depreciated by approximately 14% in Q3 2025, reducing its earlier record appreciation of over 40% by the end of July to 21% by September.
Nevertheless, recent data from commercial banks indicate a 37% year-to-date (YTD) increase, implying that the cedi appreciated by about 16% in the first half of October alone.
From October 13 to 17, the cedi rose by 9.5% against the U.S. dollar, representing one of its strongest weekly performances in recent years.
Market analysts credit the surge to the Bank of Ghana’s (BoG) improved foreign exchange management strategy, which has transitioned from weekly forex auctions to spot sales for commercial banks — a change that industry participants claim has enhanced market efficiency and increased dollar liquidity.
The BoG’s stringent monetary policy, along with fiscal discipline, strong export earnings, and renewed investor inflows, has further bolstered the recovery of the local currency.
Despite the robust performance, the central bank has reduced direct dollar interventions, signaling confidence in the market’s stability and the success of recent reforms.
As of mid-October, the U.S. dollar was priced at approximately GH¢10.95 at commercial banks, while the interbank rate fluctuated between GH¢10.70 and GH¢10.85.
At forex bureaus, the dollar was traded between GH¢12.00 and GH¢12.40, indicating a narrowing spread and enhanced forex stability.
Economists suggest that if the current policy consistency persists, the cedi could sustain its strength through the end of the year.
