Ghana's Current Cedi Depreciation; Drivers and Policy Options

By the end of 2024, the Ghanaian Cedi was widely recognised as one of the weakest-performing currencies in Africa, experiencing substantial depreciation relative to major global currencies. This depreciation contributed to macroeconomic instability, which in turn exacerbated economic hardships for many Ghanaians. In 2025, however, the trajectory shifted markedly, with the Cedi appreciating and, for a period, being acknowledged as one of the best-performing currencies globally. The Cedi is currently experiencing a depreciating trend against the US Dollar, British Pound, and Euro. As of September 10, 2025, the Cedi has been trading at approximately GHc12.11 per $1 on the interbank market and between GHc13.20 and GHc13.45 at forex bureaus. The Cedi's Year-to-Date gain against the US$ has dropped to 18.51%. The Bank of Ghana's interbank rate is approximately GHc16.38 per British Pound, while forex bureaus are quoting rates between GHc16.15 and GHc16.96. The interbank rate for the Euro is approximately GHc14.19, and forex bureaus are selling between GHc14.04 and GHc14.72. This paper examines the policy implications of this depreciation episode, interrogates its underlying drivers, evaluates its effects on the Ghanaian economy, and proposes policy measures aimed at promoting exchange rate stability.

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