Cedi the Worst-Performing Currency in 2025 3rd Quarter After Earlier Gains
- The cedi is reported to be suffering the biggest decline globally after an earlier world-beating performance in 2025
- The Bank of Ghana’s official rate pegged the dollar at GH¢11.89 after hitting the GH¢11 mark just last week
- Commercial banks attributed the depreciation to pressure on the limited dollar supply from the Bank of Ghana
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The cedi experienced the largest decline globally in the third quarter of 2025.
This has been attributed to the surge in demand for dollars by companies paying for imports before the year-end holiday season.
Source: Getty Images
According to Bloomberg, the cedi has weakened 13% so far this quarter.
“That’s erased some of the cedi’s 50% gain that was underpinned by a stronger bullion price and saw it ranked as the world’s best performer in the three months through June.”
Bloomberg noted that the Bank of Ghana’s inability to supply sufficient foreign currency to the market has also contributed to the cedi’s current weakness.
Hamza Adam, head of market-risk management at UMB Bank Ltd, said:
“As at last week, banks that filed dollar needs on behalf of their clients to the Bank of Ghana got about half of their requests…This week, the central bank is trying to meet all demand.”
On a year-to-date basis, the cedi has gained 23% after strengthening from around GH¢15 to about GH¢10 in the course of 2025.
Currently, the Bank of Ghana’s official rate pegged the dollar at GH¢11.89 as of September 4.
Bloomberg previously named the cedi the world’s best-performing currency.
While Ghana’s gross international reserves soared to a three-year high of $11.1 billion by the end of June, the central bank won’t deploy sufficient funds to fully meet demand for foreign exchange.
The central bank has said the cedi should stabilise within a reasonable range.
“Our role at the Bank of Ghana is to ensure that fluctuations remain orderly, that they reflect fundamentals and that they do not undermine confidence in the broader economy.”
Challenges the cedi has previously experienced
The Ghanaian cedi has endured a long and difficult struggle to keep pace with the US dollar over the years, performing particularly poorly between 2020 and 2023 when COVID-19 hit.
Ghana's official currency rose from about GH¢ 5.50 in January 2020 to GH¢11.88 in December 2023, per data from the Bank of Ghana.
Source: Getty Images
The cedi's performance worsened over the years, reflecting a steady decline in its value, investor confidence, and the overall stability of the economy.
Ghana, under former President Akufo-Addo's leadership, explored various ways to boost the cedi’s value, but to no avail.
Ato Forson celebrates the cedi's rise
YEN.com.gh had earlier reported that Ato Forson, the Finance Minister, praised the significant progress in stabilising Ghana's currency.
He noted that the President Mahama-led administration had reversed the cedi's depreciation, making it one of the best-performing currencies globally.
Dr. Forson highlighted the role of the Ghana Gold Board in the cedi's stability, with a 16.7% year-to-date gain as of May 2025.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
