Cedi starts April 2025 on stable note; one dollar going for GH¢15.95
The Ghanaian Cedi commenced April 2025 on a stable note after experiencing a mixed performance throughout March. On April 2, 2025, the currency was trading at GH¢15.95 per US dollar, reflecting slight gains from the previous week.
Despite this relative stability, the cedi has seen a year-to-date depreciation of 1.74% in the retail market and a decline of over 5% in the interbank market. At the close of the previous week’s trading, it recorded a mid-rate of GH¢15.80 per dollar.
The improved performance was attributed to a reduction in demand for foreign exchange, which helped the local currency recover some value. In particular, the cedi appreciated by 0.63% against the US dollar, 0.99% against the British pound, and 0.88% against the euro on a week-on-week basis.
Ghana’s foreign exchange reserves also improved in early 2025, providing additional support to the cedi’s stability. Excluding encumbered assets, the country’s reserves increased by 7.17% within the first two months of the year, rising from US$6.40 billion in December 2024 to US$6.86 billion by February 2025.
This improvement in reserves occurred despite a significant 48% rise in the cost of refined oil imports. The increase in reserves has enhanced Ghana’s import cover, which now stands at three months—an improvement from 2.9 months recorded at the end of 2024.
Financial analysts believe that these strengthened reserves have enabled the Bank of Ghana (BoG) to intervene in the market, providing much-needed support to maintain the cedi’s stability. BoG’s efforts to manage exchange rate fluctuations have been crucial in keeping the currency from further depreciation.
Looking ahead, experts predict that the cedi will likely remain stable in the short term due to continued support from Ghana’s foreign exchange reserves. However, future movements in the currency’s value will depend on various factors, including global economic conditions, inflation rates, and ongoing monetary policy decisions by the central bank.
The cedi’s recent resilience is a positive sign for businesses and consumers, as a stable currency helps reduce uncertainties related to pricing and imports. However, maintaining this stability will require continued efforts from policymakers to ensure sufficient foreign exchange reserves and manage inflationary pressures effectively.
As the second quarter of 2025 begins, financial markets will closely monitor the cedi’s performance to assess whether it can sustain its current stability or if new economic pressures may lead to further fluctuations.
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