Ghana cedi appreciates by over 11% against US dollar – Ghana Business News
Data from the Bank of Ghana reveals a significant appreciation of the Ghanaian cedi against the United States (US) dollar in the first half of May 2025.
Comparing the mid-rate of GH¢13.8 recorded on May 2 to the mid-rate of GH¢12.3 on May 19, the cedi has strengthened by approximately 10.9 per cent against the dollar during the period.
Further analysis by the Ghana News Agency shows some fluctuation within the timeframe.
For instance, between May 9 and May 16, the cedi also showed an upward trend, appreciating by roughly 6.1 based on the provided mid-rates of GH¢13.1 and GH¢12.3, respectively.
These figures underscore the volatility inherent in the foreign exchange market and the current positive trajectory of the cedi against the dominant US currency. The Bank of Ghana continues its oversight of these developments.
Despite this progress, opinions on the factors accounting for the appreciation of the cedi against the dollar differ, as experts attribute various contributory factors.
Dr Zakaria Mumuni, First Deputy Governor, Bank of Ghana, said the cedi’s appreciation against the dollar was due to the Central Bank’s aggressive liquidity management, including tightening monetary policy and a hike in interest rates.
Dr Kabiru Mahama, Member of Parliament for Walewale, attributed the appreciation to two monetary policies by the central bank, including the injection of an excess of $492 million into the market.
He said the Government’s decision not to spend in the first quarter of the year also helped to shore up the cedi.
According to the Ghana International Trade and Finance (GITF), an investment agency, the cedi’s appreciation was partly due to market sentiments and external factors.
It said external factors such as the United States trade rift with China, occasioned the appreciation, especially when investors offloaded US assets.
The GITF attributed the appreciation to the Gold Board initiative through strengthened reserves.
Source: GNA
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