BY Grace Zigah
The cedi has staged an impressive comeback in October 2025, wiping out all third-quarter losses and regaining investor confidence — but analysts say its rebound may be more “policy-driven” than market-generated.
The currency’s recent surge follows a series of targeted interventions by the Bank of Ghana (BoG), raising questions about whether the current stability is sustainable or an artificial boost engineered by liquidity injections.
According to data from Bloomberg and the World Bank, the cedi depreciated by about 14% between July and September 2025, eroding earlier gains that had seen the currency appreciated by over 40% at the end of July.
By September, the cedi’s year-to-date (YTD) gains had fallen sharply to 21%, sparking concerns of renewed depreciation pressures.
However, the tables turned in October. New figures from commercial banks indicate that the cedi’s YTD appreciation now stands at 37%, meaning the local currency has gained about 16% in just three weeks.
The turnaround — largely attributed to the BoG’s direct cash interventions and revised foreign exchange policies — has helped the cedi recover almost all its lost value from the third quarter.
Between October 13 and 17 alone, the cedi appreciated by 9.5% against the dollar, one of the steepest weekly gains in years.
On the interbank market, the cedi is currently quoted between GH¢10.70 and GH¢10.85, while some commercial banks are selling the dollar for GH¢10.95.
At the forex bureau, the dollar trades between GH¢12.00 and GH¢12.40, signaling a renewed surge in supply and demand stability.
BoG’s Policy-Driven Recovery
Sources within the banking sector say the cedi’s rebound has been largely engineered by the BoG recent injection of foreign exchange liquidity into the market.
Earlier this month, the central bank introduced a new phase of its Domestic Gold Purchase Programme, under which it announced plans to sell up to $1.15 billion in October through spot market interventions.
Unlike the previous system of weekly auctions, the BoG now conducts twice-weekly spot sales to commercial banks, creating more immediate access to dollars.
The Governor Dr. Johnson Asiama explained that the initiative aims to “deepen the interbank foreign exchange market, enhance transparency, and reduce volatility.”
He noted that the Bank’s goal is to “maintain a stable and efficient forex system that ensures liquidity and market neutrality.”
Analysts, however, argue that the intervention — while stabilizing in the short term — represents a form of artificial stimulus designed to create temporary confidence rather than address underlying economic weaknesses.
