The Ghanaian cedi has shown signs of strong recovery in the foreign exchange market, bringing a bit of hope to Ghanaians who have been battling with rising prices and economic pressure for many months. According to the Bank of Ghana’s official interbank exchange rates, as of Tuesday, May 27, 2025, the cedi has gained value against three of the world’s most powerful currencies — the US dollar, the British pound, and the euro.

For many Ghanaians, especially importers, traders, transport operators, and households, this slight appreciation brings a sigh of relief, even if it’s too early to celebrate fully.

The Numbers Speak: Here’s How the Cedi Is Performing

Let’s break it down:

US Dollar

Buying Rate: GH¢10.3948

Selling Rate: GH¢10.4052

British Pound

Buying Rate: GH¢14.0964

Selling Rate: GH¢14.1115

Euro

Buying Rate: GH¢11.8288

Selling Rate: GH¢11.8395

These figures are slightly better than what we’ve seen in recent weeks, when the cedi was depreciating sharply, especially against the dollar, hitting nearly GH¢11 at one point.

Now, the improvement might not seem like much to some people, but in the world of foreign exchange, even small gains mean a lot. A few pesewas difference in the dollar rate can translate into millions of cedis saved or lost by businesses and government agencies.

What’s Behind This Positive Turn?

According to financial analysts and economic observers, the improved strength of the cedi did not happen by chance. A combination of policy actions and external inflows have helped calm the market and improve supply of foreign currencies.

Here are some of the key reasons:

Bank of Ghana’s Interventions
The central bank has been actively managing the market, selling dollars from its reserves at strategic moments to stabilize the cedi. These interventions help control panic and reduce speculation.

Tightened Fiscal Measures

The government has also introduced strict fiscal controls to reduce unnecessary spending. This helps lower the pressure on the currency, especially when there’s less borrowing and less money chasing fewer goods.

Cocoa Syndicated Loans

Ghana’s cocoa industry has seen a boost in foreign exchange earnings, thanks to proceeds from the cocoa syndicated loans. These are large amounts of money borrowed in foreign currency against future cocoa sales, and the inflow of dollars helps the cedi gain some strength.

Remittances from Abroad

Ghanaians living outside the country continue to send money back home to support their families. These remittances, which often come in dollars or euros, increase the supply of foreign currency and reduce demand pressure.

What Does This Mean for You and Me?

For the average Ghanaian, the most important question is: How does this affect my pocket?

Here’s how:

Importers and Businesses

Businesses that rely on imported goods — from rice, sugar, cement, to car spare parts — use foreign exchange to pay suppliers. A stronger cedi means they need fewer cedis to buy the same amount of dollars. If this trend continues, prices may stop going up — and in some cases, they might even come down.

Fuel Prices

Ghana imports refined fuel, and the price of petrol and diesel is directly affected by the dollar rate. If the cedi remains strong, fuel prices may drop, and that can lead to a possible reduction in transport fares and cost of goods.

Cost of Living

With lower transport and fuel costs, the cost of food and other essential items could also stabilize. This will be a great relief for Ghanaians who have been struggling with the high cost of living for over a year.

Caution from Experts: Don’t Rejoice Too Quickly

Even though the trend is positive, experts are advising Ghanaians not to become overly excited. Some say this could just be a temporary gain unless long-term reforms are made.

One economist told a local radio station:

“We are happy to see the cedi gaining value, but it’s too early to call this a victory. The underlying issues in the economy are still there — high public debt, low export earnings, and over-dependence on imports.”

Analysts say more needs to be done to keep the cedi strong over time, including:

Growing local industries to reduce import demand.

Encouraging exports of value-added goods.

Managing government borrowing and spending carefully.

Keeping inflation low and productivity high.

A Boost for Investor Confidence

When a country’s currency gains stability, it sends a positive signal to both local and foreign investors. It shows that the government and the central bank are in control of the economy, and that gives businesses more confidence to invest.

This is important for Ghana, especially as it seeks foreign direct investment in sectors like agriculture, manufacturing, mining, and renewable energy.

Voices from the Streets: What Ghanaians Are Saying

We spoke to a few Ghanaians about how they feel about the cedi’s recent appreciation.

Ama Serwaa, a hair product trader at Makola, said:

“I went to change money this morning and I was surprised the dollar rate has dropped a bit. If it continues like this, maybe our prices will stabilize. But let’s wait and see.”

Kweku Mensah, a clearing agent at Tema Port, said:

“For us, even one pesewa change in the dollar rate affects our charges. So yes, it’s good news — but we need more consistency.”

Akwasi Boateng, a taxi driver in Kumasi, also shared his view:

“If fuel prices drop because of this, then we will all feel it. Everything depends on the dollar in this country.”

Final Thoughts: A Step in the Right Direction

There’s no doubt that the recent appreciation of the Ghana cedi is a step in the right direction. It gives hope that with continued policy discipline, smart economic management, and support from the private sector, Ghana can finally achieve currency stability and economic relief for its people.

But this is just the beginning. The challenge now is to build on this gain, make the economy more resilient, and ensure that future shocks — like global price hikes or elections — don’t throw the cedi back into freefall.

For now, though, Ghanaians can breathe a little easier, knowing that the cedi is holding its own — at least for now.