Cedi Slips Despite Economic Recovery

The Ghana cedi opened the week with a marginal depreciation against the US dollar, highlighting short-term currency movements despite the Bank of Ghana’s confidence in the broader economic recovery.

Official interbank exchange rates released by the Bank of Ghana (BoG) on Monday, October 26, showed the cedi buying at GH¢11.6442 and selling at GH¢11.6558 to the dollar.

The rates represent a weakening from Friday, October 23, when the local currency bought at GH¢11.5992 and sold at GH¢11.6108 per dollar.

The latest movement comes as businesses and investors continue to monitor exchange-rate developments for their potential implications for import costs, pricing decisions and overall business confidence.

Despite the marginal depreciation, Bank of Ghana Governor Dr Johnson Pandit Asiama has expressed confidence in the economy’s broader direction, citing the cedi’s overall recovery against major international currencies.

Speaking at the launch of the Ghana Investment Promotion Centre’s (GIPC) 2025 Annual Investment Report, Dr Asiama attributed the improving economic environment to stronger external reserves and growth across key sectors.

He said developments in the economy had helped create a more stable and predictable environment for businesses and investors.

“These developments have contributed to creating a more stable and predictable environment for businesses and investors,” he noted.

According to the Governor, economic growth has become increasingly broad-based, supported by improvements in agriculture and services alongside a steady recovery in industry.

The central bank expects stronger external reserves and improving macroeconomic fundamentals to continue supporting the cedi over the coming quarters.

Foreign reserves are important in helping the country meet its external payment obligations and supporting confidence in the local currency.

However, the latest interbank figures show that the cedi can still experience short-term fluctuations even as the central bank points to improvements in the wider economic outlook.

For businesses, movements in the exchange rate remain an important consideration, particularly for those dependent on imported raw materials, equipment and finished goods.

The direction of the cedi in the coming months will therefore remain a key indicator for importers, investors and other market participants assessing Ghana’s economic conditions.

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