Cedi swings sharply in 2025 after rare stability, now among Q3’s worst performers

The Ghana cedi has experienced one of its most dramatic years in recent memory, marked by sharp swings and rare periods of stability.

The currency opened 2025 at GH₵14.7 to the US dollar before weakening slightly to GH₵15.50 by February, where it held steady until April — one of the longest runs of stability in more than a decade.

Then came the surprise. Between April and May, the cedi strengthened rapidly from GH₵15.50 to GH₵10.30 in just five weeks, a rally analysts described as extraordinary. From May through July and into early August, it remained stable, trading between GH₵10.3 and GH₵10.5.

But by mid-August, the tide had turned. In just three weeks, the cedi slipped to GH₵11.90, ranking among the worst-performing currencies in the third quarter of 2025.

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Interestingly, external conditions have remained broadly favourable. Gold prices are at record highs, the US dollar is subdued, and the US Federal Reserve is expected to cut interest rates — all factors that should ordinarily support the cedi.

Instead, the pressure appears to be domestic. Remittances, a key source of foreign exchange, have slowed, partly due to distorted incentives during the cedi’s surge.

For example, in April, a $100 remittance converted into GH₵1,550, enough to buy about 150 cement blocks. By May, the same amount fetched only GH₵1,030, barely enough for 100 blocks.