Ghana’s economy has experienced a notable downturn, as the cedi plummeted 5.3% against the US dollar in the first quarter of 2025, per the Bank of Ghana’s Summary of Economic and Financial data.
The decline was exacerbated by pronounced losses in January and February, with 5.3% and 3.9% declines, respectively, underscoring persistent exchange rate pressures.
The cedi’s depreciation extended beyond the dollar, weakening 9.2% against the euro and 8.2% against the British pound by March’s end. However, recent trends suggest a nascent recovery, with the cedi gaining 0.31% week-on-week in the retail market, narrowing its year-to-date loss to 2.36%.
To mitigate the cedi’s continued pressure, Governor of the Bank of Ghana, Dr. Johnson Asiama, has introduced measures to tighten monetary policy, enhance foreign exchange reserves, and implement structural reforms. Dr. Asiama stressed the importance of monetary and fiscal coordination, inflation control, and structural reforms to restore confidence in the cedi.
Despite these challenges, analysts contend that clear policy direction and investor confidence will be pivotal in determining the cedi’s trajectory in the coming months. Notably, as Ghana’s economy navigates these complexities, the cedi’s performance in the second quarter of 2025 remains uncertain.
