Currency News [June 2, 2025]

The Ghanaian Cedi opened the week stronger against its three major trading partner currencies as it maintained its record run against the Dollar, the Pound, and the Euro on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). The Cedi’s strong momentum, however, slowed as it posted modest gains at this week’s opening compared to the past five weeks of the Cedi’s rollercoaster ride. The Cedi’s rally has come on the back of a confluence of factors, including the government’s contractionary economic policy, with the new government taking a cautious stance towards spending as well as strong reserves and rising prices of gold and cocoa.

The Cedi’s suppressed gain is coming at a time when demand for forex is beginning to pick up as businesses prepare to make entitlement payments to offshore investors. According to Reuters, offshore investors are increasingly returning with forex demand as they seek to repatriate earnings from Cedi investments. This notwithstanding, the Cedi is expected to continue to post moderate gains as Ghana prepares to receive the next tranche of disbursement from the IMF, totaling USD 370 million, which will further strengthen Ghana’s forex reserve position.

On the BoG inter-bank trading platform, the Cedi traded up by 1.44%, 1.50%, and 0.94%, having been exchanged for GHS 10.2551, GHS 13.8998, and GHS 11.7288 at the start of the week from the previous week’s opening trade values of GHS 10.4052, GHS 14.1115, and GHS 11.8395 against the Dollar, the Pound, and the Euro, respectively. The Dollar once again remained subdued against some of its trading pairs as uncertainty about trade policies raised doubts about the outlook for the US economy.

On the Open Forex Market (oanda.com), the Cedi soared by 3.18%, 3.46%, and 2.99% to trade at GHS 10.2767, GHS 13.9026, and GHS 11.7291 at this week’s opening from last week’s opening trade quotes of GHS 10.6143, GHS 14.4007, and GHS 12.0906 against the Dollar, the Pound, and Euro, respectively. The Euro fell against some of its trading pairs, hurt by the market’s expectations that the European Central Bank will this week hand down its eighth rate cut over the past year, on signs of weak inflationary pressures from the bloc’s biggest economy.

The Cedi was quoted at GHC 14.7074 on the first trading day of the year against the Dollar and is currently being sold at GHS 10.2551, indicating a Year-to-Date (YTD) gain of 30.27% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 10.2767 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134, indicating a YTD gain of 30.15%.