Ghana Cedi Rebounds Over 3% as Bank of Ghana Interventions and Strong Gold Prices Boost Confidence
After weeks of market pressure, the Ghana cedi has made a strong comeback, appreciating by more than 3% against major foreign currencies. The rebound follows decisive actions by the Bank of Ghana (BoG) to inject liquidity into the foreign exchange market and restore investor confidence. According to Databank Research, the central bank’s increased intervention, coupled with rising export inflows, has helped the local currency stabilize after a turbulent start to the quarter.
The cedi’s recovery has been supported by several key factors, including seasonal inflows from Ghana’s major commodity exports such as cocoa and gold. Gold prices have hit record highs, surpassing US$4,000 per ounce, bringing in much-needed foreign exchange earnings. Additionally, the Bank of Ghana’s move to double the frequency of its FX auctions has enhanced market liquidity, reducing pressure on the local currency.
On the interbank market, the USD/GHS rate closed at GHS 12.17, down from GHS 12.40, while the euro and pound sterling traded at GHS 16.25 and GHS 14.14, respectively. In the retail market, the cedi gained even further, appreciating by 3.45% against the dollar, 5.25% against the pound, and 4.67% against the euro to close at GHS 13.05, GHS 17.15, and GHS 15.00, respectively. Analysts say this improvement reflects growing market confidence following Ghana’s successful fifth review under the IMF program.
The positive trend has also been recognized globally. The World Bank’s latest Africa Pulse Report named the Ghana cedi as the best-performing currency on the continent for the first eight months of 2025. The report credits this performance to strong fiscal discipline, prudent monetary policies, and renewed investor optimism after the government’s debt restructuring and IMF-backed economic reforms.
Looking ahead, the Bank of Ghana is expected to inject approximately $1.15 billion into the forex market throughout October to maintain stability. However, economists caution that sustaining these gains will depend on consistent fiscal prudence, export diversification, and structural reforms. With renewed confidence and robust policy support, Ghana’s currency appears to be regaining its footing—offering a much-needed boost to the economy and businesses that rely heavily on exchange rate stability.
source: citi newsroom