Ghana Cedi Depreciates Further As Dollar, Pound, And Euro Surge

Ghana, Sept 5 (MUZICGH) - The Ghanaian cedi has continued its recent slide against major international currencies, extending a period of depreciation that has put renewed pressure on the West African nation's economy.

According to daily exchange rates published by the Bank of Ghana (BoG), the cedi has weakened significantly against the U.S. dollar, the British pound, and the Euro over the past week. This follows a sharp decline that began on Monday, with the local currency losing approximately 4.4% of its value against the dollar in just three business days, as reported by Muzicgh.com.

The latest figures from the Bank of Ghana underscore the ongoing trend. On Thursday, September 4, the BoG quoted the cedi at a selling rate of ₵11.9060 to the U.S. dollar and a buying rate of ₵11.8941. This marked a notable depreciation from the selling rate of ₵11.7559 and a buying rate of ₵11.7441 recorded on Wednesday, September 3.

The cedi's decline continued into Friday, September 5. The Bank of Ghana's rates for the day showed the U.S. dollar selling for ₵11.9560 and buying for ₵11.9440, reflecting a further weakening of the cedi.

Similar trends were observed in other key currency pairs. The British Pound Sterling (GBP) was selling for ₵16.0064 on Thursday, a significant increase from Wednesday's rate of ₵15.7399. By Friday, the selling rate had climbed to ₵16.0617.

The Euro (EUR) also followed suit. The central bank's selling rate for the Euro was ₵13.9016 on Thursday, up from ₵13.7096 on Wednesday. On Friday, the Euro's selling rate was pegged at ₵13.9170.

The sustained depreciation of the cedi raises concerns for Ghana's economy, which is heavily reliant on imports. A weaker currency can lead to an increase in the cost of imported goods, including essential commodities like fuel and food. This, in turn, can contribute to inflationary pressures and negatively impact the cost of living for Ghanaians.

The daily rates provided by the Bank of Ghana serve as an official benchmark for commercial banks and the broader financial sector, though market rates for retail customers may vary. Businesses involved in international trade are closely monitoring the cedi's performance as they face the challenge of increased foreign exchange costs.

Cedi's Performance In August

While the cedi experienced a sharp depreciation at the beginning of September, its performance in August was characterized by a mixed trend, which followed a period of resilience in the previous months. Data from the Bank of Ghana shows that the interbank exchange rate for the U.S. dollar to the cedi was ₵11.4000 at the end of August. This suggests a period of relative stability for a portion of the month, as it was only a marginal depreciation from the end-of-July rate of ₵10.5000.

This stability came after the cedi demonstrated exceptional resilience and strength in the first half of the year. According to the Ministry of Finance's Mid-Year Fiscal Policy Review, the cedi appreciated by 42.6% against the U.S. dollar by the end of June 2025. This was a significant reversal from the depreciation seen during the same period in 2024. The government attributed this strong performance to improved fiscal positions, strong revenue collection, and a significant increase in international reserves.

However, the recent volatility at the beginning of September indicates that the currency is facing renewed pressure, reversing the positive momentum seen in previous months.