Cedi Breaches Pres. Mahama’s “True Value Band” of ₵10 & ₵12, Inflation & Prices to Face Fresh Pressure

In an interesting turn of events, the cedi has broken the band expected by President John Dramani Mahama to be the true and real value of the local currency.

The President has earlier indicated that, from his interaction with the Governor of the Bank of Ghana, Dr. Johnson Asiama, and the Minister for Finance, Dr. Cassiel Ato Forson, the true value of the cedi lies anywhere between the band of ₵10 and ₵12.

After the President suggested this in early June, giving hope to Ghanaians and businesses, three months on, the reality has proven to be unforgiving.

Checks by The High Street Journal reveal that the cedi continues to tumble and it’s currently trading above ₵12.

For instance, at the bank rates, commercial banks such as ABSA and Stanbic banks are selling the dollar at ₵12.10 as of today, September 3, 2025. This officially breaches the upper limit of Mahama’s projected stability band.

The situation is even more dire at the forex bureaux. Checks reveal that the forex bureaux are trading $1 at ₵12.70.

For ordinary Ghanaians and businesses, this is more than just a dip. It sends a new signal of turbulence ahead. With Ghana being a highly import-dependent economy, this means more.

The cedi’s dip means prices of imported goods, from rice and cooking oil to spare parts and medicines, and others will have their prices adjusted upwards. This also has implications for inflation, which for eight consecutive months has been easing.

Should inflation uptick, households are at risk of their incomes being wiped out and stretch wallets even thinner.

Businesses, especially import-dependent SMEs, are faced with the widening gap between the bank rate and the forex bureaux rate, further creating uncertainty. This means more cedis will be needed to import, making imported products expensive.

The depreciation could also push transport fares and utility costs higher, feeding into the broader cost-of-living crisis.

Economists warn that unless confidence is restored through stronger inflows, tighter fiscal discipline, and credible forex management, the cedi’s descent could further erode purchasing power.

The breach of President Mahama’s “true value band” is more than a market technicality; it is a reminder that the stability of the cedi remains elusive, and survival keeps getting costlier.

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