The Ghana cedi began 2025 on a losing note, depreciating marginally by 0.38% against the US dollar in the retail market.
As a result, the local currency traded at GH₵15.80 per US dollar at forex bureaus.
On the interbank market, the cedi exchanged at GH₵14.70 to the dollar.
This decline comes despite the Bank of Ghana’s continued liquidity support for the foreign exchange market.
— Bank of Ghana (@thebankofghana) January 2, 2025
Since November 2024, the central bank has injected over $200 million into the FX market.
The outlook for the cedi remains uncertain, even with improved secondary reserves.
In November 2024, the cedi showed resilience, appreciating by 6.6% month-on-month (-21.75% year-to-date) against the US dollar, defying the global strengthening of the greenback amid geopolitical tensions and the “Trump trade” effect.
Analysts predict that the cedi could regain strength in the coming months. Fitch Solutions forecasts a stronger cedi performance, citing lower interest rates in the US and a recovery in Ghana’s foreign reserves.
Similarly, IC Securities anticipates improved performance in 2025, driven by the incoming government’s tight fiscal policy.
The cedi closed 2024 with a year-to-date loss of 21.58%, trading at GH₵15.75.
It ranked as the third worst-performing currency among 15 major African currencies. The Nigerian naira recorded the worst performance with a YTD loss of 41.42%, followed by the Egyptian pound at 39.24%.
In contrast, the Kenyan shilling emerged as Africa’s top performer in 2024, with a relatively modest loss of 21.01%.