The Ghana Cedi could soon trade at a single-digit rate to the US dollar, according to Nelson Cudjoe Kuagbedzi, Head of Finance at UMB Capital.
As of Monday, June 2, 2025, the Cedi is trading at approximately GHS10.27 to $1.
His remarks come at a time when the Cedi has appreciated by over 30% since the beginning of the year, driven by improved export performance, remittances, and rising international reserves.
Speaking on the Citi Breakfast Show on Monday June 2, Mr Kuagbedzi cited increased inflows, including expected disbursements from the International Monetary Fund (IMF), as a major factor driving the local currency’s appreciation.
“The IMF money is coming, and that is also coming to shove up the reserve. I expect the cedi to hit a single digit,” he said.
He noted that although the Bank of Ghana (BoG) has not provided a target rate for the cedi, the central bank appears to be allowing market forces to determine the exchange rate.
“The dollar is a commodity that we go and buy, so I expect the rate to hit single digits within the shortest time,” he stated.
However, Kuagbedzi cautioned that the current strength of the cedi is partly due to the government’s contractionary economic policy and limited spending.
He predicted that once major expenditures begin, particularly on payables and development projects, the cedi could lose some ground and stabilise within the GHS11 range.
“Once the government starts spending or moves away from the contractionary economic policy, the cedi will begin to bounce back and settle within the GHS11 bands,” he added.
