Ghana cedi continues to strengthen, hits GH¢10.50 per $1 on Bloomberg FX data

The Ghana cedi has continued its impressive ascent on the interbank market, registering substantial gains against major trading currencies, particularly the US dollar.

As of the close of trading at 5:00 PM on Friday, 23 May 2025, the cedi was trading at approximately GH¢10.83 to the US dollar, according to Bloomberg data. This marks a significant appreciation from earlier in the month, when the cedi was exchanging at around GH¢15.31 per USD.

The Bank of Ghana's official interbank mid-rate for the same day stood at GH¢10.9500 per USD. This robust recovery is attributed to tighter monetary policy conditions and renewed investor confidence. On Friday, 23 May 2025, the Bank of Ghana (BoG) maintained its monetary policy rate at 28%, signalling its continued commitment to inflation control and macroeconomic stability.

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This decision reflects the central bank's view that underlying inflationary pressures are easing, supported by a more stable exchange rate and a reduction in imported inflation. Speaking at a press briefing on Friday, Governor of the Bank of Ghana, Dr Johnson Asiama, pointed to several contributing factors behind the cedi's rebound.

These include improved foreign exchange inflows, possibly from gold and cocoa exports, remittances, and multilateral support, as well as regulatory measures aimed at curbing speculative demand in the FX market. The BoG has reiterated its focus on anchoring inflation expectations and ensuring a gradual buildup of foreign exchange reserves.

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Meanwhile, if sustained, the Ghana cedi's recent performance could ease inflationary pressures in the near term and provide room for future policy adjustments.