Cedi Stages Stunning Comeback: Rises to GH¢11.9 Per Dollar

The recent resurgence of the cedi has taken the financial market by surprise, the Ghana cedi has posted one of its strongest performances in 2025, appreciating by an impressive 5% against the U.S. dollar between October 6 and October 10, 2025.

The rally, which analysts describe as one of the most significant recoveries marks a decisive reversal of the currency’s third-quarter slump, during which it lost about 14% of its value.

Data obtained from major commercial banks and the Bank of Ghana indicate that the local currency is currently trading at around GH¢11.9 to $1 on the interbank market as of October 14, 2025. This sharp appreciation effectively erases most of the third-quarter losses and restores optimism in Ghana’s forex market.

The cedi’s recovery comes after months of sustained pressure throughout the third quarter of 2025, largely driven by seasonal demand for foreign exchange, delays in external inflows, and uncertainties in global commodity prices. According to the World Bank’s 2025 Africa Pulse Report, the cedi had depreciated by 14% during that period — one of its weakest performances since 2023.

However, the recent rally has put the local currency back in the spotlight, with overall data showing that from January to August 2025, the cedi had appreciated by 21% against the dollar. This makes the Ghana cedi one of Africa’s best-performing currencies this year, a stark contrast to the same period in 2024, when it lost about 19% of its value.

New BoG Policies

Industry insiders attribute the cedi’s stunning rebound to new forex and monetary policy measures implemented by the Bank of Ghana (BoG). Chief among these was the central bank’s decision to revise its foreign exchange market intervention strategy — shifting from weekly auctions to spot sales for commercial banks.

This policy adjustment, according to market players, has enhanced price efficiency, improved dollar supply, and curbed speculative trading. The Ghana Association of Banks (GAB) has praised the BoG’s intervention, describing it as a masterstroke that has revitalized interbank forex trading.

GAB’s Chief Executive, John Awuah, in an interview noted that: “The cedi’s rebound reflects recent market developments and prudent policy direction by the central bank. The decision to review the Net Open Position (NOP) for banks has provided more flexibility and improved liquidity in the market.”

These measures have not only stabilized market expectations but also strengthened confidence among investors and corporate traders.

Gold-Backed FX Programme

The Bank of Ghana’s Domestic Gold Purchase Programme has also played a significant role in the cedi’s rally. Earlier this month, BoG Governor Dr. Johnson Asiama announced that the central bank had commenced foreign exchange intermediation under the programme.

Dr. Asiama explained that the initiative aims to deepen the interbank FX market, enhance price discovery, and reduce exchange rate volatility — all while ensuring transparency and sustainability. “Our overarching goal remains to stabilise the exchange rate, maintain a level playing field, and support liquidity in the banking system,” Dr. Asiama stated.

This gold-backed approach has strengthened Ghana’s foreign reserves and diversified the country’s FX sources, reducing dependence on external borrowings and donor inflows.

Market Confidence

Commercial banks and forex traders have reported improved confidence and liquidity across the forex ecosystem. On the interbank market, the cedi was quoted between GH¢11.95 and GH¢12.05, while retail transactions saw some banks selling the dollar at around GH¢12.30.

Even in the forex bureau market, where rates tend to reflect real-time demand and supply dynamics, the cedi has gained traction, trading between GH¢13.20 and GH¢13.50 as of October 12.

Meanwhile, the World Bank has also highlighted Ghana’s currency performance as one of the most resilient in Africa. In its 2025 Africa Pulse report, the institution noted that the cedi’s year-to-date gain of about 20% is supported by tight fiscal discipline, prudent monetary policy, and higher export revenues, particularly from gold and cocoa.

It further emphasized that the Bank of Ghana’s conservative approach to liquidity management and its inflation-targeting framework have anchored market confidence and boosted the currency’s resilience.