The Ghanaian Cedi is experiencing a significant resurgence after months of instability, demonstrating one of its most impressive performances in recent memory. This recovery signals a potential turning point for the Ghanaian economy.
Cedi's Appreciation Against Major Currencies
Over the past few weeks, the Cedi has appreciated considerably against major trading currencies, indicating renewed market confidence, improved macroeconomic management, and effective policy interventions by the Bank of Ghana (BoG).
Specifically, between mid-October and late October 2025, the Cedi appreciated to GH¢10.85 per US Dollar (+9.68%), GH¢14.42 per Pound (+10.00%), and GH¢12.61 per Euro (+9.16%) on the interbank market. This positive trend was also reflected in the retail market.
Factors Driving the Recovery
Several factors have contributed to the Cedi's recent strength:
- Bank of Ghana's Interventions: The BoG's open-market operations, strategic foreign exchange sales, and tighter monetary policy have played a crucial role in stabilizing the currency.
- Improved External Conditions: The disbursement of the second tranche of the IMF Extended Credit Facility (ECF) injected liquidity into the market and boosted reserves.
- Export Performance and Cocoa Receipts: Early inflows from cocoa exports have also supported the Cedi.
Ghana's gross international reserves currently stand at approximately US$6.8 billion, covering about 3.1 months of imports.
Optimism and Future Outlook
This turnaround has sparked optimism within financial circles and ignited discussions about Ghana's journey towards economic stability and resilience. However, sustained efforts are needed to consolidate these gains and ensure long-term economic prosperity for Ghana.