policymakers stressed that a tighter stance would help cement inflation expectations and discourage speculative pressures on the currency.
Cedi resurgence
Investor appetite, however, remains robust. Strong demand at auctions has been driven by improved macroeconomic sentiment and relatively stable exchange rate conditions.
The cedi’s resurgence, after depreciating 19.2 percent against the US dollar in 2024, has been a central factor in this turnaround. Since the start of 2025, the currency has appreciated by 10.5 percent – strengthening from GH¢14.71 to the dollar in December 2024 to GH¢13.31 by end of the first week in May 2025. The gains have also been felt against the British pound and euro, with respective year-to-date appreciations of 5.9 percent and 5.8 percent.
OMO tightening has also served to shore-up the cedi among other contributing factors such as the gold for reserve programme, which has over the past weeks been appreciating against all major currencies… especially the US dollar.
At close of the last week’s trading – Friday, May 16, 2025 – the cedi gained 2.26 percent w/w against the US dollar, 3.50 percent w/w against the British pound and 3.68 percent w/w against the euro. The exchange rates quoted at the mid-rates of GH¢13.30/$ (+16.73% YTD), GH¢17.15/£ (+12.24 percent YTD) and GH¢14.95/€ (+7.69 percent YTD).
The central bank’s strategy of absorbing surplus liquidity has helped stem speculative currency pressures while preserving external balance.
thebftonline.com
