The cedi continued to lose ground against major currencies, with its year-to-date appreciation falling to 18.51% as of Tuesday, September 9, 2025 down from 20.35% recorded just four days earlier on Friday, September 5.
The recent depreciation is driven by strong corporate demand for foreign exchange and limited supply in the market.
Analysts note that the Bank of Ghana’s intervention in the forex market has been more restrained in recent months, with current supply levels significantly lower than those seen in May, June, and July 2025.
A key factor behind the cedi’s volatility, according to market watchers, is the central bank’s clampdown on foreign currency cash withdrawals not supported by corresponding deposits.
While intended to strengthen monetary discipline, this move has contributed to tightening liquidity in the forex market, intensifying pressure on the local currency.
On the retail forex market, the cedi traded at an average of GH¢12.90 per US dollar on Friday, but has since depreciated to GH¢13.10.
On the interbank market, the cedi is currently exchanging at GH¢12.10 to the dollar.
Bloomberg reported on September 4 that the cedi has lost 13% of its value in the third quarter alone, erasing a portion of the currency’s impressive 50% surge in the first half of the year, a period when it was ranked the best-performing currency globally, buoyed by stronger gold prices.
Analysts caution that if the Bank of Ghana does not increase forex supply soon, the depreciation trend may persist in the short term.
Despite the current volatility, UK-based Fitch Solutions has revised its end-of-year forecast for the cedi, projecting it to close 2025 at GH¢13.00 to the dollar, an upgrade from its earlier estimate of GH¢15.50.
The firm also expects the cedi to appreciate by 12.9% against the US dollar over the course of the year.
