The Ghana cedi is closing 2025 with its strongest year-end performance in nearly a decade, breaking a longstanding pattern of fourth-quarter depreciation that has historically weighed on the local economy.
The currency has steadily appreciated in recent weeks, reversing the traditional seasonal trend of heightened foreign exchange pressure ahead of the festive period. The turnaround has brought relief to importers, manufacturers, and businesses across the private sector who typically face elevated costs during this time of year.
For decades, the final quarter has been marked by intense demand for dollars as businesses stock up for Christmas and year-end operations. This year, however, the cedi has gained ground instead, supported by robust diaspora remittances, improved export earnings, and a sustained trade surplus.
Market data from the interbank segment underscores the shift. On December 30, the cedi was trading around GHC10.65 to the US dollar according to Bank of Ghana figures, with the British pound at approximately GHC14.38 and the euro at around GHC12.55.
The improvement stands in stark contrast to the close of 2024, when the cedi faced severe pressure. At that time, the dollar traded around GHC14.70 to GHC14.72 on the interbank market, with the pound at approximately GHC18.42 and the euro at around GHC15.29, driving inflation higher and undermining business confidence.
Economists attribute the current stability to improved foreign exchange supply, disciplined demand management, and renewed investor sentiment. Sustained inflows from Ghanaians abroad and stronger commodity exports have helped insulate the market from the shocks typically associated with year-end trading, they say.
While analysts warn that currency stability depends on continued prudent fiscal and monetary policy, the cedi’s performance in the closing days of 2025 is being seen as a rare encouraging sign for Ghana’s macroeconomic outlook as the country enters the new year.