Ghana Cedi Posts Marginal Gains Amid Currency Market Volatility

The Ghanaian cedi has recorded slight gains against major foreign currencies, trading at GH¢14.54 to the US dollar in official markets, according to the Bank of Ghana’s daily exchange rate update.

The central bank reported buying and selling rates of GH¢14.54 and GH¢14.55 for the dollar, GH¢19.37 and GH¢19.40 for the British pound, and GH¢16.54 and GH¢16.56 for the euro as of April 28, 2025.

However, retail forex bureaus in Accra and other major cities quoted higher rates, with the cedi trading at GH¢15.85 to the dollar, GH¢21.00 for the pound, and GH¢18.00 for the euro on the same day. The disparity between official and retail rates underscores ongoing volatility in Ghana’s foreign exchange market, reflecting persistent demand pressures and speculative trading.

Analysts attribute the cedi’s marginal strengthening in official channels to recent central bank interventions aimed at stabilizing the currency, including tighter liquidity management and periodic dollar injections. Despite these efforts, the gap between formal and informal market rates highlights challenges in aligning supply with demand, particularly as businesses and individuals navigate inflationary pressures and import dependency.

The cedi’s performance remains a critical indicator of Ghana’s economic health, influencing costs for imports, debt servicing, and consumer prices. While the central bank’s benchmark rates provide a reference, the higher retail bureau figures signal lingering skepticism among market participants about the currency’s near-term stability.

Currency fluctuations have become a recurring concern for Ghana, which has faced significant depreciation pressures in recent years due to global economic shifts, reduced foreign reserves, and domestic fiscal constraints. The government’s ongoing engagement with the International Monetary Fund under a $3 billion extended credit facility aims to restore macroeconomic stability, but the cedi’s trajectory continues to test investor confidence.

The divergence between official and retail exchange rates also raises questions about the effectiveness of policy measures in curbing speculative activities and unifying the currency market. Economists stress that sustained stability will require not only central bank interventions but also structural reforms to boost export competitiveness and reduce reliance on foreign exchange for essential goods.

As Ghana navigates these challenges, businesses and households remain vulnerable to exchange rate shocks, underscoring the need for cohesive strategies to mitigate risks and foster long-term resilience in the financial sector.