Businesses charging in U.S. dollars are beginning to lose out as the Ghanaian cedi continues to strengthen. Just a month ago, a $100 product brought in around GHS 1,600; now, it’s earning under GHS 1,500. If the cedi keeps rising, many businesses may be forced to switch to pricing in cedis to avoid losses.
Although the Bank of Ghana has long warned that pricing in foreign currency is illegal, many businesses have done so to protect themselves against the cedi’s past instability—especially if their costs are in dollars. But with the cedi now gaining consistently, the market itself may pressure businesses to comply with the law, without the need for enforcement.
Businesses relying on dollar income will also lose the extra profits they used to enjoy when the cedi weakened, and may need to adjust their strategies to stay profitable.
The cedi has been rising steadily since the middle of last month, with the dollar now trading around GH₵14.25 from GH₵15.60 a month ago, and even dipping as low as GH₵13.98 in early trading on Friday, May 2, on the interbank market. A stable dollar supply on the interbank market is forcing traders to release their dollar reserves, pushing the exchange rate even lower.
Global and local factors are driving the cedi’s strength. Internationally, investors are pulling away from the U.S. dollar due to uncertainty over former President Trump’s trade tariffs, instead putting money into gold, which weakens the dollar.
Locally, investor confidence is rising thanks to Ghana’s progress with the IMF, which is expected to release new funds soon. Government policies—like the establishment of a Gold Board—are also boosting trust in the cedi.
Bank of Ghana Governor Dr. Johnson Asiama has promised careful management of Ghana’s foreign reserves to maintain economic stability. He said the central bank has mapped out the country’s foreign currency needs for the next two years to ensure it can meet all external payments without difficulty.
Ghana’s reserves stood at $9.2 billion as of February 2025—a record high.
Many are hoping that the Central Bank and the Ministry of Finance will maintain policies that keep the cedi strong, potentially leading to lower prices for goods and services.
