Cedi Loses Steam: Ghana’s Currency Appreciation Against Dollar Slows to 21% Amid Market Pressures

Ghana’s cedi, which dazzled global markets with record gains earlier this year, is now losing momentum. New Bank of Ghana figures show the local currency’s year-to-date appreciation against the U.S. dollar has slowed to 21% as of September 2025, down sharply from a 42.6% rally in June. Traders and analysts say the reversal reflects seasonal import demand, weaker remittance inflows and tightening global financial conditions.

On the interbank market, the cedi traded at about GH¢12.15 to the dollar in mid-September, retreating from its strongest levels in the first half of the year. Between June and September alone, the currency lost nearly 20% of its value, erasing a large slice of the gains that had catapulted it into the top tier of the world’s best-performing currencies.

The cedi’s performance against other major currencies has been mixed. In September it strengthened 6.9% versus the euro, settling at GH¢14.23, and gained 11.8% against the British pound to trade at GH¢16.45. But those figures still pale compared to June’s dramatic surge, when the cedi had appreciated more than 30% against the pound and over 25% against the euro.

Bank of Ghana Governor Dr. Johnson Asiama acknowledged the slowdown, citing “seasonal trade pressures” and “softer remittance inflows” during a Monetary Policy Committee meeting on September 15. “Despite these pressures, the cedi remains one of the strongest currencies globally,” he said, noting that year-to-date it still ranks alongside the Russian ruble, Swedish krona, Norwegian krone, Swiss franc, euro and British pound in performance.

With the final quarter of 2025 approaching, importers, exporters and ordinary Ghanaians are watching the cedi closely. Analysts expect demand for foreign currency, holiday remittance patterns and any further monetary policy moves to determine the next chapter in its story. For households and businesses alike, the cedi’s path will influence everything from fuel prices to the cost of imported goods — underscoring how a once-soaring currency’s slowdown ripples through everyday life.

source: citi newsroom