The Ghana Cedi demonstrated resilience against the US dollar and the other major trading currencies in April 2025.
This was buoyed by improved market liquidity following the Bank of Ghana’s targeted supply-side interventions.
The central bank’s injection of US$490 million into the market effectively eased demand pressures by sufficiently meeting forex demand.
As a result, the cedi appreciated by 5.3% month-month against the US dollar. This resulted in a 7.44% year-to-date (YTD) gain.
The local unit also gained 0.71% against the British pound (0.79% YTD), and remained relatively stable against the euro, slipping just 0.3% month-on-month—narrowing its YTD depreciation to 1.83% on the retail market.
According to a Reuters report, Gold Board (Goldbod) has secured an agreement with nine mining companies to purchase 20% of their monthly estimated gold production of 200 kilogrammes before export.
The deal allows the government to pay in cedi equivalent to the mining companies, other than in US dollar.
Analysts believe this will reduce the burden on the FX reserve.
“We believe this is a positive move to help shore up Ghana’s gold reserve and help strengthen the Ghana Cedi in May 2025. Additionally, we expect the central bank’s targeted intervention to help stabilise the unit. As such, we expect the Ghana Cedi to remain strong this week”, Databank Research said.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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