Cedi to return to GH₵14.00 to a dollar by end of 2025 after aggressive rise – Absa report

The Ghana cedi may reach GH₵14.00 to a dollar by the end of 2025. This projection comes from Absa, Africa's fifth largest bank. They released their latest Cedi Report in May 2025.

The report states that the cedi's rise was driven by high gold and cocoa prices. However, it warns of a potential reversal to GH₵14.00 per dollar by year-end. Currently, the cedi is within the GH₵13.00 range.

Absa expects a partial reversal towards GH₵14.00/USD this year. This adjustment aims to maintain purchasing power parity and keep exports competitive. The report predicts an average exchange rate of GH₵14.16/USD in 2025.

The report also highlights actions taken by the Bank of Ghana. They are working to convert strong export receipts into official gross reserves. This has allowed more hard currency supply in the interbank market.

As a result, the exchange rate dropped sharply from GH₵15.50/USD to GH₵13.05/USD recently. However, Absa believes this rally may be too aggressive.

The report emphasizes the significance of GoldBod for government control over gold trade. With GoldBod established, the government can better manage export receipts and build reserves.

As of May 16, 2025, the dollar was selling for GH₵13.30 at Forex Bureaus. The interbank rate stood at GH₵12.40.