Cedi’s recent gains will hold through 2025, 2026, but gold prices decline is a threat – Fitch Solutions

Fitch Solutions has pointed out that the recent gains of the Ghana cedi will hold through 2025 and 2026.

According to the UK-based firm, the Bank of Ghana’s solid international reserves of US$7.9 billion underpinned by historically high gold prices support its view.

In an article, “What Our Clients Want to Know: Sub-Saharan Africa Q3 [Quarter 3] 2025 Macroeconomic Update”, it however warned that a decline in gold price could put pressure on the local currency.

“A hypothetical decline in gold prices, which could potentially be triggered by a sudden easing of geopolitical tensions, would quickly erode Ghana’s export earnings, push the current account back into deficit, and undermine reserve adequacy.”

“In such a scenario, the central bank would struggle to defend the cedi and would likely be forced to let the currency weaken”, it added.

Cedi Appreciated by 40% Against Dollar in 7-Months of 2025

According to the Bank of Ghana, the Ghana cedi appreciated by 40.7% against the US dollar in the first seven months of 2025.

The July 2025 Summary of Economic and Financial Data indicated that it traded at GH¢10.45 to one US dollar on the interbank market.

In May 2025, the local currency appreciated by 43% against the American dollar.

Similarly, the cedi appreciated by 42.6% against the dollar in June 2025.

It also appreciated by 24.2% to the euro on the interbank market in June 2025, going for GH¢12.25.

For the pound, the cedi also gained 31.2% in value. It consequently sold at GH¢14.02 the interbank market.

Presently, the cedi is going for GH¢10.50 to one US dollar on the interbank market and GH¢12 in the retail market.

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