Cedi Surges 40.7% Against Dollar in 2025, Driven by Strong Fundamentals and Investor Confidence

The Ghanaian cedi has posted a remarkable recovery in 2025, appreciating by 40.7% against the US dollar within the first seven months of the year. According to the Bank of Ghana’s latest Summary of Economic and Financial Data, the cedi is now trading at GH¢10.45 to the dollar on the interbank market, a significant improvement from the GH¢15 mark it opened with at the start of the year. The rally is seen as one of the strongest in recent years for the West African currency.

Much of the appreciation was concentrated in the second quarter, with the cedi gaining 43% in May and 42.6% in June. Beyond the dollar, the local currency also made impressive strides against the euro and British pound, appreciating by over 25% and 30% respectively during the same period. By July, it was trading at GH¢12.25 per euro and GH¢14.02 per pound on the interbank market.

Although there was a slight 0.47% dip in the last two weeks of July, the cedi remained firm, closing at GH¢10.48 per dollar. On the retail market, it was averaging GH¢12.00 to the dollar. The year-to-date appreciation now stands at 29.38%, a development that has been well received by market analysts and importers alike, who are starting to see slight reductions in the cost of imported goods.

The government has credited the currency’s rebound to a mix of improved macroeconomic conditions, increased export earnings, and renewed investor confidence in the Ghanaian economy. Finance Minister Dr. Ato Forson, in his Mid-Year Budget Review, highlighted that the cedi’s strength is already contributing to price stability. Some imported goods are reportedly becoming slightly cheaper as a result.

Looking ahead, Dr. Forson assured citizens that the government remains focused on preserving these gains. Measures aimed at economic stabilization and growth will continue, he said, as part of a broader effort to ensure long-term fiscal resilience. Analysts, however, advise monitoring global trends and domestic spending patterns closely, as these could influence the currency’s sustainability in the months ahead.

Source: Citi newsroom