Ghana’s Cedi Begins 2025 with 2% Depreciation Against Major Trading Currencies
The Ghanaian cedi has started the year 2025 with a 2% depreciation against major trading currencies, including the US dollar, Euro, and British Pound.
This development signals persistent challenges in stabilizing the local currency.
According to 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 current exchange rates stand 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, leading to increased import costs and external transactions.
The depreciation is attributed to heightened demand for foreign exchange, driven by import activity and external debt servicing. Additional market pressures, such as tightening global financial conditions, fiscal imbalances, and high inflation, have also contributed to the cedi’s performance.
To address these challenges, the government and central bank are expected to prioritize boosting foreign exchange reserves. Industry players suggest other measures, including export diversification, reduced import reliance, and prudent fiscal policies to stabilize the currency and support Ghana’s economic recovery.
The cedi’s performance will remain a key indicator of Ghana’s economic challenges throughout 2025. As the country navigates these challenges, it is essential for policymakers to implement effective strategies to stabilize the currency and promote economic growth.
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