Ghana’s cedi weakened against the dollar, pound and euro last week, extending its recent slide to this week as corporate demand for foreign currency, combined with reduced central bank intervention, put pressure on the market. The move confirms a forecast by Reuters, which predicted further weakness into this week ending Thursday, August 28.
From August 18 to August 25, 2025, the local currency lost ground against all three major currencies. It opened the week at about ¢10.80 to the dollar and closed at ¢10.95, marking a fall of 1.4 percent. Against the British pound, the cedi slipped from ¢14.60 to ¢14.77, while it fell from ¢12.60 to ¢12.78 against the euro, a decline of about 1.2 and 1.4 percent, respectively.
The sharpest losses came midweek, with the dollar rate rising from ¢10.82 on August 20 to ¢10.95 by August 21, a level that held through to the new week. Similar movements were observed with the pound and euro, reflecting the consistent pressure on the local currency.
Market analysts point to firm dollar demand from manufacturers, bulk distributors, and service providers that has far outpaced supply. At the same time, the Bank of Ghana has scaled back its interventions, moving away from continuous injections of liquidity into the market. Instead, it has relied on intermittent forex auctions that have consistently been oversubscribed, leaving buyers chasing dollars on the open market.
In addition, the central bank has directed commercial banks to halt foreign currency payouts to corporates without prior deposits, a measure designed to curb speculative demand but one that has yet to ease market tightness.
The trajectory was largely in line with Reuters’ forecast, which noted that the cedi was likely to weaken further on the back of strong corporate demand and the absence of sustained central bank liquidity support. The agency said further weakness was expected until demand and supply reached some form of equilibrium, aided by reforms and heavier interventions.
While the currencies of Kenya, Nigeria, Uganda, and Zambia were seen holding broadly stable over the same period, the cedi’s performance underscored domestic pressures unique to Ghana’s forex market.
With the local unit already down more than one percent in just one week, attention is turning to whether the central bank will be forced to step in more aggressively or whether corporate appetite for dollars will cool in the days ahead.
