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Wednesday, May 21, 2025

Ghana cedi appreciates to GHS 11.90 per dollar, showing signs of stability on currency market

In a welcome development for Ghana’s economy, the Ghanaian cedi has appreciated significantly against the U.S. dollar, trading at GHS 11.90 per $1 as of May 21, 2025. According to Google Finance and Morningstar data, this marks a sharp recovery from previous highs nearing GHS 15 earlier in the month.

The 1-month currency chart (see image below) shows a consistent downward trend in the USD/GHS rate — a clear indication of the cedi’s rebound on the forex market.

The recent improvement is being attributed to government intervention, increased foreign exchange reserves, and positive investor sentiment following recent macroeconomic policy updates under the current NDC administration led by President John Dramani Mahama.

“We’re beginning to see results from the efforts put in place by the Bank of Ghana and the Ministry of Finance,” an economist at the University of Ghana told Asaaseradio.

The appreciation comes at a time when inflationary pressures are beginning to ease, and Ghana is seeing improved export earnings from cocoa, gold, and oil.

Key Drivers of the Cedi’s Strength:

•Improved forex inflows from international development partners and exports.

•Tighter monetary policy by the Bank of Ghana.

•Restructured debt talks under the IMF program showing positive signs.

•Stronger consumer and investor confidence since the beginning of Q2 2025.

Market Reaction:

Financial analysts advise cautious optimism, as global market uncertainties and oil price fluctuations still pose risks.

“This isn’t a time to celebrate just yet, but it’s a positive signal for businesses and households alike,” noted a currency trader in Accra.

What’s Next?

If current policies remain consistent, the cedi may continue its gradual recovery. However, economic watchers remain focused on:

•Inflation trends

•Import demand

•External debt servicing pressure

•Performance of Ghana’s key export sectors

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