Cedi Expected to Lose Ground to the Dollar Before 2026 But Still Make History: “Slight Weakening”
- Fitch Solutions expects a slight weakening of the Ghana cedi to the US dollar before the end of December 2025
- The cedi is currently trading at GH¢12.00 to one dollar at the forex bureau and selling at GH¢10.92 on the interbank market
- The cedi has been one of the best-performing currencies in Africa, appreciating by almost 30% against the dollar
Ghana’s top stories, now easier to find. Discover our new search feature!
Fitch Solutions has predicted a slight weakening of the Ghana cedi against the US dollar before the end of 2025.
The cedi has appreciated by over 29% against the dollar in the retail market since the beginning of 2025.
Source: Getty Images
It is on course to appreciate against the dollar in a given year for the first time in its history.
It is presently going for GH¢12.00 to one dollar at the forex bureau and selling at GH¢10.92 on the interbank market.
“We expect most major Sub-Saharan African currencies to remain broadly stable through quarter 4 2025 and into 2026, extending the calm observed year-to-date.”
“Indeed, we anticipate only a slight weakening of the Ghana cedi, Zambia kwacha, Nigeria Naira and South Africa rand by the end of 2025”
The UK-based firm expects a further 8% depreciation of the cedi against the US dollar and is predicting the dollar trades for GH¢11.70 on the interbank market by the end of 2026.
It also noted that the price of gold will remain elevated due to policy uncertainty in the US.
What has the central bank said about cedi trend
Speaking during the IMF/World Bank Spring Meetings, Governor of the Bank of Ghana Dr Johnson Asiama, said Ghana’s foreign exchange market has regained its stability, with commercial banks now driving trade rather than the central bank.
He said the interventions by the Bank of Ghana were temporary measures to cushion the market during a period of heavy outflows and lumpy payments.
He explained that between the second and third quarters, the central bank had to meet large financial obligations, including billions of dollars in arrears owed to Independent Power Producers.
The period also saw some domestic debt exchange bondholders deciding to exit their investments following the appreciation of the cedi.
In comments to YEN.com.gh, Samuel Asiamah, a forex analyst, said fluctuations in the cedi are set to be the norm.
“The era of a flat cedi is over. The market will stay flexible with short bursts of appreciation and correction, driven by seasonal dollar flows and limited central bank firepower.”
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.
Cedi the worst-performing currency in 2025 3rd quarter
YEN.com.gh reported that the cedi experienced the largest decline globally in the third quarter of 2025.
This was attributed to the surge in demand for dollars by companies paying for imports before the year-end holiday season.
Source: YEN.com.gh
