The Ghana cedi is currently depreciating on an average 2%, a concerning way to start the year 2025.
This decline highlights the fact that the government is still having challenges in stabilizing the local currency.
According to the Bank of Ghana’s latest Summary of Economic and Financial Data, the cedi weakened by 2.4% against the US dollar, 3.0% against the euro, and 0.8% against the British pound as of January 2025. Official exchange rates place the cedi at GHS 15.06 per dollar, GHS 15.69 per euro, and GHS 18.55 per pound.
However, forex market rates are higher, with the dollar trading between GHS 15.90 and GHS 16.20, further driving up import costs and external transaction expenses.
The depreciation is largely attributed to increased demand for foreign exchange, fueled by import activity and external debt servicing. Other contributing factors include tightening global financial conditions, fiscal imbalances, and high inflation.
To address the pressures, the government and the central bank are expected to focus on boosting foreign exchange reserves. Industry experts also recommend measures such as export diversification, reducing import dependency, and implementing prudent fiscal policies to stabilize the currency and support economic recovery.
The cedi’s performance will remain a key barometer of Ghana’s economic challenges throughout 2025.
Ghanaians are however optimistic that the new Finance Minister, Dr. Cassiel Ato Forson who began work a few days ago will work rigorously with relevant stakeholders to stabilize the cedi.
