Cedi Depreciates 5.3% to Dollar in Q1 2025 – BoG

The Ghanaian cedi has depreciated by 5.3% against the US dollar within the first quarter of 2025, according to the latest report from the Bank of Ghana (BoG). The decline comes amid continued pressures on the foreign exchange market, rising import demands, and investor sentiments surrounding Ghana’s economic recovery efforts.

In its quarterly review, the BoG cited several factors contributing to the cedi's weakening performance, including external shocks, reduced inflows of foreign direct investments, and concerns over Ghana’s fiscal consolidation program. Despite efforts by the central bank to stabilize the currency through interventions in the forex market, the cedi continues to experience fluctuations.

Financial analysts suggest that unless drastic measures are taken to boost reserves and enhance export earnings, the local currency may face further depreciation in the coming months. The government, on the other hand, has assured businesses and the public that measures, including enhanced revenue collection and foreign exchange management policies, are being implemented to cushion the economy.

Market watchers remain keen on how the cedi will perform in the coming months as Ghana prepares for mid-year economic assessments.

Conclusion

The depreciation of the cedi in the first quarter of 2025 underscores Ghana’s economic vulnerabilities and the need for stronger policy interventions. As authorities work towards stabilizing the economy, stakeholders will be watching closely to see how effective these measures will be in curbing further depreciation.