Cedi Falls to GH¢12.55 on Interbank Market as Pressure Mounts

The Ghanaian cedi has slipped further against the US dollar, trading at GH¢12.55 on the interbank market, marking one of its lowest points in 2025 and signaling renewed strain on the economy. The rate reflects both the mid-market valuation and the average quoted by major commercial banks, where buying and selling margins now hover around GH¢12.54 and GH¢12.56 respectively.

This latest depreciation has rekindled debate over the stability of the local currency and the broader health of the economy. Analysts believe a combination of rising import demand, external debt obligations, and unsettled investor confidence has intensified pressure on the cedi in recent weeks. Although seasonal demand for foreign exchange is not unusual, the pace of the depreciation has raised concern among businesses, consumers, and policymakers.

The decline is also occurring in a period marked by persistent inflation and elevated interest rates. Companies in sectors such as oil marketing, pharmaceuticals, construction, and manufacturing—most of which rely on imported inputs—are expected to experience increased operational costs. Some industry players warn that prices of essential goods and services may rise if the trend continues, potentially eroding purchasing power and straining household budgets.

Financial institutions and treasury managers have been monitoring the currency’s movements closely, with many reporting tighter spreads and cautious trading behavior. Some banks have slightly adjusted their indicative rates to reflect market volatility, while others are limiting forward deals until there is more clarity on the outlook for the cedi and foreign exchange supply.

Currency traders say that corporate demand has outpaced supply in recent days, placing further stress on the interbank market. Export inflows, which typically cushion the cedi, have been inconsistent, and remittances alone have not been sufficient to offset deficits in the current account. The situation is compounded by delays in external financing disbursements and a slowdown in foreign direct investment inflows, which previously supported the currency during periods of volatility.

There is growing speculation about short-term intervention by monetary authorities to stabilize the market. Such measures could include targeted liquidity management, open market operations, or coordinated strategies involving commercial banks. Discussions around rebuilding foreign reserves and strengthening export receipts have also intensified, with some experts calling for faster implementation of policies that expand non-traditional exports and attract portfolio investments.

Beyond the financial sector, the depreciation has political and social implications. The public is increasingly sensitive to exchange rate fluctuations, as they often have a direct impact on transportation costs, food prices, and utility tariffs. Businesses negotiating new contracts or servicing dollar-denominated loans are reassessing their financial projections for the fourth quarter, while importers worry that further losses in the currency could disrupt supply chains or increase the cost of clearing goods at the ports.

Some economists argue that the latest rate movement, while alarming, reflects deeper structural realities rather than temporary market swings. They point to the country’s reliance on imports, recurring balance of payment challenges, and foreign currency exposure in both the public and private sectors. Without a more diversified export base and stronger fiscal discipline, they warn that the cedi may remain vulnerable to shocks.

Despite these concerns, others maintain that the currency could still stabilize if targeted reforms take effect and if external conditions improve. They highlight ongoing discussions around revenue mobilization, expenditure control, value addition in key industries, and partnerships aimed at stimulating growth. However, they caution that recovery will depend on sustained enforcement of economic policies and transparent communication to investors and the public.

For now, the GH¢12.55 rate has become a psychological benchmark in the markets, signaling that the cedi’s depreciation has moved beyond earlier projections. Businesses and individuals are being advised to plan conservatively, hedge where possible, and closely monitor exchange trends. The coming weeks will likely determine whether the currency can regain lost ground or continue on its downward trajectory.

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