THE CEDI’S RISE AGAINST THE DOLLAR IN 2025
The Ghanaian cedi has strengthened noticeably against the U.S. dollar in recent times, surprising many economists and market watchers. One major reason is higher export earnings, especially from gold and cocoa, which brought more foreign currency into Ghana’s economy and boosted FX reserves. Strong global prices for these commodities helped grow dollar inflows and reduced pressure on the cedi.
Another key factor is policy action by the Bank of Ghana and the government, including tighter monetary management, strategic forex interventions, and fiscal discipline that improved investor confidence. Support from Ghana’s IMF programme and improved fiscal credibility also strengthened market trust in the currency.
In addition, external factors such as a relative weakening of the U.S. dollar globally and reduced demand for dollars due to temporary pauses in external debt repayments have eased pressure on the cedi.
Together, these factors helped the cedi appreciate and improve Ghana’s macroeconomic stability.