Currency News [May 12, 2025]

The Cedi maintained its intense rally as it rose strongly to build on previous weeks’ gains against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market. The local unit’s stronger leap at this week’s opening follows a recent upgrade of Ghana’s sovereign rating, adding to earlier gains made. S&P Global Ratings, late last week, affirmed a ‘CCC+’ issue ratings on Ghana’s debt, while also affirming a ‘CCC+/C’ long- and short-term local currency ratings on Ghana.

The rating agency also asserted that the outlook on both the foreign and local currency ratings remains stable, with Ghana’s transferability and convertibility assessment remaining ‘CCC+’. These ratings are a significant improvement from the ‘SD’ – Selective Default rating that Ghana was previously placed in. This development, coupled with the Dollar’s general weakness, declining crude oil prices, an increase in forex reserves supported by strong gold reserves and gold price, is expected to see the Cedi maintain its strong footing in the near term and stability in the short to medium term.

On the BoG inter-bank trading platform, the Cedi appreciated by 5.57%, 6.03%, and 7.13% to trade at GHS 12.8964, GHS 17.0401, and GHS 14.3411 at the start of the week from last week’s opening trade quotes of GHS 13.6568, GHS 18.1335, and GHS 15.4420 against the Dollar, the Pound, and the Euro, respectively. The Pound lost against a basket of currencies, including the Cedi, after data showed a further cooling in the UK’s workforce as unemployment rose from 4.4% to 4.5% in the first quarter and growth in wages slowed down.

On the Open Forex Market (oanda.com), the Cedi soared by 7.43%, 8.00%, and 8.97%, having been exchanged for GHS 13.1249, GHS 17.3444, and GHS 14.6223 at the start of the week from last week’s opening trade quotes of GHS 14.1791, GHS 18.8518, and GHS 16.0632 against the Dollar, the Pound, and the Euro, respectively. Rising expectations with the financial market already seeing a 90% chance of a rate cut in June by the European Central Bank after seven earlier cuts in the past year have trimmed the Euro’s rally against some of its trading pairs.

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 12.8964, indicating a Year-to-Date (YTD) appreciation of 12.31% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 13.1249 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134, indicating a YTD gain of 10.80%.