The Ghana cedi may return to GH₵14.00 to a dollar by end of 2025, that is the latest forecast from ABSA Cedi Report released in May this year.
The report showed that the cedi’s aggressive rise was fueled by the surge in gold prices and elevated cocoa prices on the world market.
It however cautioned that there will be reversal towards GH₵14.00 to a dollar by the end of the year from the current GH₵13.00 bandwidth.
“We expect a partial reversal in the cedi towards GH₵14.00/USD by the end of the year so that the real effective exchange rate achieves purchasing power parity again, thereby keeping exports competitive and attracting more financial inflows. Overall, we expect the GHS to average GH₵14.16/USD in 2025”, the report said.
Providing more details for the cedi’s good run, the report pointed out that the Bank of Ghana initiated moves to translate its strong export receipts into the country’s official gross reserves.
“In turn, the Bank of Ghana has been able to supply more hard currency to the interbank market, which has driven the exchange rate sharply lower from GH₵15.50/USD a month ago to GH₵13.05/USD currently. At these levels, however, we believe the cedi has rallied too aggressively”, the report said.
Highlighting the importance of the GoldBod, the report said the initiative gives government control to build buffers and boost confidence in the future.
“With the recent establishment of the Ghana Gold Board (GoldBod), the government has greater control over gold trade and is able to more effectively funnel export receipts into official reserves”.
As of May 16, 2025 the dollar was selling for GH₵13.30 at the Forex Bureaus. The interbank rate was pegged at GH₵12.40.
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