Dollar sweating, Pound blinking -The Cedi just pulled a December miracle!
The Ghana cedi is in its strongest position in ten years as it enters the last days of 2025. This is a big boost to the local economy.
The currency has gone against the usual trend of losing value at the end of the year, which is a big change that is giving the private sector a much-needed break. For decades, the last three months of the year in Ghana have been marked by a “forex squeeze,” when importers fight for dollars to fill shelves for the holidays. But this pattern has changed in 2025. Market data shows that the local currency has not only stayed stable, but it has also gained value against major global benchmarks. The Numbers: A Win in Comparison When you look at how the cedi has recovered since the end of last year, you can see how big of a difference it is. The dollar was worth GHȼ11.50, the pound was worth GHȼ15.36, and the euro was worth GHȼ13.47 when the interbank market opened last week. By the end of the last week of December, those rates had risen to: The US dollar is worth GHȼ11.11, the British pound is worth GHȼ15.00, and the euro is worth GHȼ13.08.
This performance is very different from December 2024, when the dollar was worth an amazing GHȼ14.71, the pound was worth GHȼ18.49, and the Euro was worth GHȼ15.33. How Stability Works. Economic experts say that a “perfect storm” of good fiscal indicators has protected the cedi. Ghana is mainly benefiting from a surplus in its current account, which is helped by a good balance in both its capital and financial accounts. This makes the country’s external buffer stronger, which lets the Bank of Ghana keep the exchange rate more stable. In addition, two specific things that happened at the end of the year were very important: Less Pressure to Import: Many businesses finished their holiday import cycles earlier in the year, which led to less demand for foreign currency in the late season.
The “Diaspora Effect” A lot of Ghanaians living abroad are coming home for the “Beyond the Return” celebrations, which has greatly increased the amount of dollars, pounds, and euros available in the country. Good news for businesses. This stability is more than just a win for the Ghanaian business community; it is also a lifeline for planning operations. Importers, cross-border traders, and manufacturers who need stable exchange rates can now be more sure of how much their goods will cost. A market observer said, “The improved stability is giving businesses that rely on stable exchange rates for planning, pricing, and cross-border transactions a break.” They also said that this trend is likely to lower the overall cost of doing business in the first quarter of 2026. People who trade are feeling cautiously hopeful as the year comes to an end. People who have seen their buying power go down because of inflation and currency depreciation are hopeful that this trend means that the economy is becoming more mature in the long term.
