The Ghana Cedi depreciated by 5.3% against the US dollar in the first quarter of 2025. This is according to the Bank of Ghana’s Summary of Economic and Financial data for the period ending March 2025.
The cedi’s losses were particularly pronounced in January (5.3%) and February (3.9%), reflecting ongoing pressures on the exchange rate.
Against the euro, the cedi weakened 9.2%, closing the quarter at GH¢16.75 per euro. It also fell 8.2% against the British pound, trading at GH¢20.03 per pound by the end of March.
However, in a positive development, the local currency gained 0.31% week-on-week in the retail market last week, appreciating to GH¢15.90 per dollar at the mid-rate.
This improvement has helped narrow its year-to-date loss to 2.36%.
Speaking at a recent press opening of the 123rd Monetary Policy Meetings, Governor of the Bank of Ghana, Dr. Johnson Asiama, unveiled a set of measures aimed at stabilizing the Ghanaian cedi, as the currency faces continued pressure against major foreign currencies.
These include tightening monetary policy to control inflation, enhancing foreign exchange reserves and structural reforms to address exchange rate misalignment.
Dr. Asiama stressed the need for monetary and fiscal coordination, inflation control, and structural reforms to restore confidence in the cedi.
Market Reactions and Outlook
Despite the cedi depreciating 5.3% against the US dollar in Q1 2025, recent weeks have seen a slight recovery, with the local currency gaining 0.31% against the dollar in the retail market.
Analysts believe that clear policy direction and investor confidence will be crucial in determining the cedi’s trajectory in the coming months.
