The Bank of Ghana has confirmed that the recent weakness of the U.S. dollar has supported the Ghana cedi, helping to stabilise the local currency despite challenges in the foreign exchange market.
According to the Central Bank, the U.S. dollar index dropped by about 8 percent between January and August 2025. The decline was mainly due to a slowing American labour market and expectations of interest rate cuts by the U.S. Federal Reserve.
The Bank of Ghana’s September 2025 Monetary Policy Report said the weaker dollar, along with the growing global use of other currencies like the Chinese yuan for trade, has strengthened several emerging market currencies, including the cedi.
In Ghana, the cedi experienced mixed performance during the period. It came under pressure from high import demand and lower forex supply, caused by issues in the Gold-for-Forex programme and reduced remittance inflows.
Despite these hurdles, the cedi still recorded strong gains — appreciating by 28.95 percent against the dollar, 19.49 percent against the pound, and 14.08 percent against the euro on a year-to-date basis. This marks a sharp recovery from the heavy losses recorded during the same period in 2024.
The Central Bank said the cedi’s stability in the coming months will depend on high gold prices, improved forex liquidity following new directives to mining companies, and strict fiscal management.
It added that positive investor confidence from recent IMF programme reviews and developments in U.S. monetary policy could further shape the cedi’s outlook.
