The local currency’s losses from the third quarter of 2025 have been somewhat erased by the cedi’s consistent “good run” against the dollar over the last two weeks of October 2025.
In the third quarter of 2025, the cedi lost around 14% of its value, according to data from the World Bank and Bloomberg News.
The cedi’s previous record appreciation from over 40% at the end of July 2025 to roughly 21% by the end of September had been curtailed by this downturn.
The cedi’s year-to-date (YTD) appreciation is at 37%, according to fresh data from commercial banks.
This implies that the local currency might have gained almost 16% versus the US dollar just from the start of October, so “recovering” the losses incurred from July to September 2025.
A more thorough examination of commercial bank price quotes since the beginning of the year also showed that the cedi gained 9.5% against the dollar in just one week, from October 13 to 17.
The Ghanaian cedi may have had one of its largest weekly appreciations in recent memory.
It’s interesting to note that, according to market sources, the Bank of Ghana has reduced the amount of direct dollar interventions it does, even though the interbank market is still “very liquid” in terms of the availability of foreign exchange.
The recent surge in the cedi has been ascribed by several commercial banks to new monetary and forex policy initiatives that have enhanced the availability of dollars and reinforced the application of foreign exchange laws.
The Bank of Ghana’s decision to change its FX market interventions from weekly auctions to spot sales for commercial banks has been a significant impact.
The Ghana Association of Banks claims that this change in policy has improved market efficiency.
John Awuah, the company’s CEO, told Joy Business that the cedi’s recovery is due to “recent market developments.” He also connected the performance to the Bank of Ghana’s evaluation of commercial banks’ Net Open Position (NOP).
Additionally, market observers think that strict monetary and fiscal policies, increased export earnings, and boosted investor confidence are all contributing to the cedi’s strength.
Additionally, they think that the cedi’s impressive performance might not be over soon due to recent market reforms.
According to Joy Business’s checks, certain commercial banks are offering the US dollar for sale to retail customers for GH¢10.95.
When banks traded on the interbank market, the cedi was quoted between GH¢10.70 and GH¢10.85.
As of October 12, 2025, rates in the currency bureau market ranged from GH¢12.00 to GH¢12.40 to the dollar, reflecting the appreciation as well.
The Bank of Ghana’s Governor, Dr. Johnson Asiama, declared earlier this month that the central bank would start FX intermediation under the Domestic Gold Purchase Program in October 2025, with the intention of selling up to $1.15 billion during that time.
All licensed banks are welcome to participate in the twice-weekly, price-competitive auctions that are used to perform these spot transactions.
The initiative’s objectives, according to Dr. Asiama, are to improve price discovery, deepen the interbank foreign exchange market, and lower volatility while upholding open and market-neutral operations.
The key objective, he underlined, is still to stabilise the currency rate, guarantee fair competition, and promote long-term liquidity in the banking sector.
Source: newsthemegh.com