Cedi begins 2025 with 2% depreciation against major trading currencies
The cedi has started 2025 with an average 2% depreciation against major trading currencies.
This signals persistent challenges in stabilising the local currency.
Per the Bank of Ghana’s latest Summary of Economic and Financial Data, the cedi has weakened by 2.4% against the US dollar, 3.0% against the Euro and 0.8% against the British Pound as of January 2025.
The report places the exchange rate at GHS 15.06 per dollar, GHS 15.69 to the Euro and GHS 18.55 to the pound.
However, forex market rates are higher, with the dollar trading between GHS 15.90 and GHS 16.20, increasing import costs and external transactions.
The depreciation can be attributed to heightened demand for foreign exchange, driven by import activity and external debt servicing.
Additional market pressures from tightening global financial conditions, fiscal imbalances and high inflation have also contributed to the performance of the currency.
Government and the central bank are expected to prioritise boosting foreign exchange reserves to tame the pressures.
Other measures industry players suggest include export diversification, reduced import reliance and prudent fiscal policies to stabilise the currency and support Ghana’s economic recovery.
The cedi’s performance will remain one of the indicators to address Ghana’s economic challenges throughout 2025.
