The Centre for Economic Research and Policy Analysis (CERPA) has identified several key factors behind the recent depreciation of the Ghanaian cedi.
After a period of strong appreciation earlier this year, the currency has weakened again, trading at about GHS 12.11 to the US dollar on the interbank market as of September 10, 2025.
CERPA cites seasonal foreign exchange demand linked to fuel and essential goods imports as a major driver of the decline. It also points to limited inflows from exports and remittances, persistent structural weaknesses in Ghana’s external sector, and speculation at forex bureaus as contributing factors.
The depreciation is fuelling renewed inflationary pressures, pushing up transport fares and consumer prices. It is also raising the cost of servicing external debt in local currency terms, dampening business confidence—particularly among import-dependent firms—and risking a slowdown in investor interest if the trend persists.
To address these challenges, CERPA recommends diversifying exports, especially in non-traditional sectors, to boost foreign exchange earnings. It also calls for improved transparency and liquidity management in the forex market, tighter monitoring of retail forex activities, and accelerated reforms in the energy and mining sectors to secure steady forex inflows. Strengthening local production to reduce import dependence and maintaining fiscal discipline are also seen as critical steps.
CERPA maintained that while short-term pressures have triggered the cedi’s latest slide, long-term stability will depend on structural reforms that enhance production, diversify exports, and build confidence in Ghana’s economic management.
Read CERPA’s statement on Ghana’s Current Cedi Depreciation II here
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