Cedi soars 32% against dollar in first 11 months of 2025

Ghana’s cedi has continued its remarkable performance in 2025, recording a 32.2% appreciation against the US dollar on the interbank market over the first eleven months of the year.

According to the Bank of Ghana’s November 2025 Summary of Economic and Financial Data, the cedi closed November at GH¢11.12 to the dollar on the interbank market, with retail rates averaging GH¢12.10.

The currency’s surge has been one of the strongest in the West African region. However, the pace of gains has slowed slightly compared to earlier highs. The 32.2% year-to-date appreciation is lower than the 34.4% recorded in October, though it remains sharply above the 18.4% gain posted in September.

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Earlier in the year, the cedi enjoyed a historic rally, strengthening 43% in May, 42.6% in June, and 40.5% in July before coming under pressure between July and September. Those pressures briefly trimmed its earlier gains before the currency stabilised again in October.

The cedi’s strong performance extended beyond the dollar. It appreciated 18.8% against the euro, trading at GH¢12.80, and gained 26.4% against the British pound, closing November at GH¢14.55 on the interbank market. Yet, recent weeks have seen a slight weakening.

The currency slipped 1.80% on the interbank market, moving from GH¢10.92 to GH¢11.12, and depreciated 1.24% on the retail market, where it now trades at GH¢12.10, up from GH¢11.95.

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Analysts attribute the softening to rising corporate foreign-exchange demand and typical end-of-year pressures. Despite this, the cedi’s overall performance remains far stronger than the same period in 2024, helping sustain investor confidence.

Beyond the exchange rate outlook, Ghana’s broader economic indicators show renewed stability and recovery momentum.

Fresh data from the Bank of Ghana points to improvements in inflation, growth, and financial conditions, suggesting the economy is moving beyond post-crisis stabilisation into a phase of real expansion.

Inflation has seen one of its steepest drops in recent years. Year-on-year inflation, which stood above 22% in late 2024, has fallen sharply to 8.0% as of October 2025.

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The decline is broad-based: food inflation has eased to 9.5%, and non-food inflation has dropped to 6.8%. Monthly inflation trends also point to cooling price pressures, creating room for monetary easing and reducing the burden on households.

Economic activity is also picking up strongly. The Composite Index of Economic Activity (CIEA), a key gauge of business and consumer activity, has shown robust recovery, with recent year-on-year growth reaching 9.6%.

GDP growth has also strengthened, with overall output expanding by about 6.3%. Non-oil GDP growth, which reflects domestic production more accurately, has risen by 7–8%, driven by solid gains in industry and services, while agriculture remains steady.

The improvement in macroeconomic stability has allowed the central bank to gradually loosen monetary policy. The Monetary Policy Rate has been reduced from 28.0% to 21.5% — the second major cut in 2025.

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This easing cycle has contributed to falling borrowing costs across the financial sector, with average lending rates dropping to 22.22% by October. Treasury bill and bond yields have also declined, creating more favourable financing conditions for businesses and households.

Ghana’s external sector has been bolstered by the stronger cedi, improved reserves, and more stable external balances. The appreciation of the currency from around GHS 16.30 per dollar a year earlier to about GHS 11.12 today reflects improved foreign exchange management and investor optimism. The stronger currency has also eased imported inflation, reinforcing the broader disinflation trend.

Overall, the Bank of Ghana’s November 2025 data paints a picture of an economy regaining momentum and confidence.