The Ghana Cedi experienced a depreciation of 5.3% against the US dollar during the first quarter of 2025, as reported in the Bank of Ghana’s Summary of Economic and Financial Data for the period ending March 2025.
The decline of the cedi was particularly significant in January, where it fell by 5.3%, and in February, with a decrease of 3.9%, indicating persistent pressures on the exchange rate.
In relation to the euro, the cedi weakened by 9.2%, concluding the quarter at GH¢16.75 per euro. Additionally, it dropped 8.2% against the British pound, trading at GH¢20.03 per pound by the end of March.
On a more positive note, the local currency appreciated by 0.31% week-on-week in the retail market last week, reaching GH¢15.90 per dollar at the mid-rate. This improvement has reduced its year-to-date loss to 2.36%.
During a recent press conference marking the 123rd Monetary Policy Meetings, the Governor of the Bank of Ghana, Dr. Johnson Asiama, introduced a series of measures aimed at stabilizing the Ghanaian cedi, which continues to face pressure against major foreign currencies.
These measures include tightening monetary policy to manage inflation, bolstering foreign exchange reserves, and implementing structural reforms to correct exchange rate misalignments.
Dr. Asiama emphasized the importance of coordinating monetary and fiscal policies, controlling inflation, and enacting structural reforms to restore confidence in the cedi.
Market Responses and Prospects
Although the cedi depreciated by 5.3% against the US dollar in the first quarter of 2025, recent weeks have shown a modest recovery, with the local currency gaining 0.31% against the dollar in the retail market.
Analysts suggest that a clear policy direction and renewed investor confidence will be essential in shaping the future trajectory of the cedi in the upcoming months.
