Cedi at GH¢12.55 on Interbank Market
Ghanaian Cedi is trading at an average rate of GH¢12.55 against the US Dollar on the interbank foreign exchange market, according to the latest data from the Bank of Ghana.
This reflects a mid-rate between the buying price of GH¢12.5437 and the selling price of GH¢12.5563.
On the retail forex market, however, the Cedi is selling at a higher rate of around GH¢13.45 per Dollar, highlighting the typical premium in consumer transactions.
Recent Trends in the Cedi's Performance
The current interbank rate marks a slight depreciation from earlier in the month, when the Cedi was trading at GH¢12.42 on October 1.
Over the past month, the Cedi has weakened by approximately 4.26%, with the USD/GHS rate rising to 12.5949 in the latest session.
Despite this short-term dip, the Cedi has shown remarkable strength throughout 2025, appreciating by about 42-43% against the Dollar since the start of the year.
This has positioned it as Africa's best-performing currency in 2025 and even the world's top performer in the second quarter, with gains of 30-40% between April and June.
Early in the year, the Cedi faced pressures, trading as high as GH¢15.56 per Dollar in April.
However, it rebounded strongly, reaching levels as low as GH¢11.85 in May before stabilizing around the current range.
Key Factors Driving the Rate
Several economic factors have contributed to the Cedi's robust performance this year.
A significant gold windfall has bolstered Ghana's foreign reserves, providing a buffer against external shocks.
Additionally, support from the International Monetary Fund (IMF) program has helped stabilize the economy, reducing inflation and improving fiscal space.
The central bank has denied using reserves to artificially prop up the currency, emphasizing that the gains are driven by genuine economic improvements.
Inflation is expected to decline further, averaging 15% in 2025 down from 23% in 2024, partly aided by the stronger Cedi.
However, ongoing challenges such as increases in utility prices, taxes, and fuel costs have historically pressured the currency, though these seem mitigated in recent months
Implications for Ghana's Economy
This exchange rate level has positive implications for Ghana, easing the burden of foreign debt repayments and making imports cheaper for businesses and consumers.
It also signals growing investor confidence, as evidenced by Fitch Ratings upgrading Ghana's credit rating to 'B-' with a stable outlook in June.
On the flip side, exporters may face reduced competitiveness due to the stronger Cedi.
Economists predict the Cedi could face further volatility, potentially reaching GH¢12.8 by November if global factors like US interest rates or commodity prices shift.
For now, the stability on the interbank market provides a welcome respite amid broader economic recovery efforts.