Currency News [August 4, 2025]

The Cedi was widely unperturbed by the announcement of the historic cut in the monetary policy rate last week, as it opened the week mixed against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com). Ghana’s central bank at its July sitting handed down a 300-basis-point cut to the policy rate, slashing the prime rate from 28.0% to 25.0%. According to the bank, the committee’s decision was supported by significant improvement in macroeconomic conditions, largely anchored inflation expectations, strengthening of Ghana’s external buffers, and improving investor confidence in the local economy.

The market’s reaction to the policy rate has been mixed, with some analysts expressing concern that the volume of the reduction could amount to capital flight as some offshore investors may wish to flee the domestic market. Already, some importers and exporters have raised alarm about difficulties in obtaining forex for their transactions, raising doubts about the level of forex circulation in the currency market at a time when the Cedi remains on a strong footing. A strong Gross International Reserves position which stood at USD 11.1 billion, equivalent to 4.8 months of import cover as of the close of the first half of the year, up from USD 8.9 billion representing 4.0 months of import cover, at the close of last year, is expected to calm the nerves of market players as the Cedi’s outlook remains stable.

On the BoG inter-bank trading platform, the Cedi lost by 0.29% against the Dollar, trading at GHS 10.5153 at the week’s opening from last week’s opening trade quote of GHS 10.4852. The Dollar soared against a number of its trading pairs as traders reacted to a relatively hawkish stance by the US Fed, healthy economic data, and the imposition of new tariffs on a series of trading partners. Against the Pound and the Euro, the Cedi edged up by 0.57% and 0.14% to open the week trading at GHS 13.9653 and GHS 12.1617 from last week’s opening trade quotes of GHS 14.0460 and GHS 12.1790, respectively.

On the Open Forex Market (oanda.com), the Cedi was down by 0.38% against the Dollar, after being offered for GHS 10.5047 at the week’s opening from last week’s opening trade value of GHS 10.4646. The Cedi, however, traded up against the Pound and the Euro, up by 0.51% and 0.41% to trade at GHS 13.9574 at the week’s opening from last week’s opening trade figures of GHS 14.0284 and GHS 12.2065, respectively. The Euro fell against a host of trading pairs, hurt by concerns that the Eurozone had accepted the worst end of its trade agreement with the US.

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 10.5153, indicating a Year-to-Date (YTD) gain of 28.50% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 10.5047 on the Open Forex Market (oanda.com) after opening the year at GHS 14.7134, indicating a YTD gain of 28.60%.