Cedi hits record 24.1% surge against dollar in May 2025 – BoG

The cedi has recorded its strongest performance in recent years, surging significantly against its major trading counterparts.

According to the Bank of Ghana’s May 2025 Summary of Economic and Financial Data, the cedi has appreciated by 24.1% against the US dollar, 16.2% against the British pound, and 14.1% against the euro, marking an all-time high in percentage terms.

As of May, the cedi is trading at approximately GH₵11.85 to the dollar, GH₵15.84 to the pound, and GH₵13.34 to the euro, reflecting a remarkable turnaround from the sharp depreciation trends observed in recent years.

Government officials and the Bank of Ghana attribute the currency rally to a mix of tight fiscal policy, increased gold reserves, and sustained economic reforms.

“The appreciation reflects a combination of factors, including prudent monetary policy, improved market sentiment and external sector gains,” said Dr. Johnson Asiama, Governor of the Bank of Ghana.

The currency’s strength is being welcomed by consumers and businesses, particularly those reliant on imports such as fuel, food, and automobiles, who hope the trend will ease costs and support economic recovery.

However, economists are urging cautious optimism.

They note that the cedi’s continued stability will depend on Ghana’s ability to maintain fiscal discipline, contain inflation, and support private sector growth.

In light of the cedi’s gains, industry players are renewing calls for a review of the current import duty structure.

They argue that aligning tariffs with the stronger currency could create more favourable pricing conditions for consumers and help stimulate demand in key sectors.