Cedi Continues Depreciation Spree as it Falls Again to ₵11.26 on Friday, Is the BoG Losing Grip?

In a shocking turn of events, the Ghanaian cedi tumbled this week, recording continuous depreciation, deepening concerns among traders and households.

The local currency slipped further against the major trading currencies on Friday, August 29, 2025, heightening fears that the Bank of Ghana may be losing its grip on stabilizing the local unit.

According to official interbank rates published by the central bank, and cited by The High Street Journal, the cedi traded at ₵11.2444 (buying) and ₵11.2556 (selling) to the US dollar, compared to ₵11.0445/₵11.0555 on Thursday and ₵10.9745/₵10.9855 on Wednesday.

This represents a depreciation of nearly ₵0.27 in just three days.

The story was no different with the British pound sterling, where the cedi tumbled to ₵15.1956/₵15.2120 on Friday from ₵14.8780/₵14.8940 the previous day, and ₵14.7980/₵14.8139 on Wednesday. That’s a steep three-day fall of about ₵0.40.

Against the euro, the cedi dropped to ₵13.1291/₵13.1410 on Friday, after trading at ₵12.8192/₵12.8308 on Thursday and ₵12.7933/₵12.8049 on Wednesday, a cumulative depreciation of ₵0.34.

The Possible Cause

While the cedi weakened moderately from Wednesday to Thursday, the more alarming fall happened between Thursday and Friday, when the currency’s fall accelerated.

Although the cause of the slip is yet to be known, it is speculated that this sudden, sharp slide reflects renewed pressure on foreign exchange demand, speculative activity in the market, and lingering concerns about Ghana’s macroeconomic fundamentals.

Businesses Brace for Impact

For import-dependent businesses, these rapid shifts translate directly into higher costs of operations, with ripple effects likely to hit consumer prices. As has been the case in Ghana’s economy, when the cedi loses 20 to 30 pesewas in just days, suppliers adjust immediately, and this feeds straight into inflation.

The Big Question: Is BoG Losing Grip?

The Bank of Ghana has, in recent months, relied heavily on monetary tightening, targeted interventions, and market liquidity support to slow the cedi’s slide. But this week’s movements raise hard questions about whether these measures are enough to instill confidence.

Critics argue that until structural issues such as over-reliance on imports, weak export diversification, and fiscal imbalances are addressed, the central bank’s efforts may amount to firefighting rather than lasting solutions.

The Road Ahead

Friday’s depreciation brings the cedi close to ₵11.30 to the dollar, with fears of further depreciation if foreign exchange inflows remain tight. The market is now looking up to the Bank of Ghana to intervene in the short term while enhancing the real of building a stronger, resilient cedi that restores confidence and curbs the instinct to dollarize the economy.

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