Cedi projected to weaken to GHS 17.23 by end of 2025

The Ghanaian cedi is projected to depreciate further, closing 2024 at GHS 16.07 to $1 and reaching GHS 17.23 by the end of 2025, according to the Economic Intelligence Unit (EIU).

Currently, the cedi trades at GHS 14.70 per dollar, reflecting ongoing economic pressures.

Key factors driving the cedi’s weakness include reduced cocoa exports and a high import bill, as highlighted in Deloitte's report, "A Sneak Preview of 2025."

In 2024, the cedi lost 25% of its value in the first nine months, improving from 2022's over 50% depreciation.

Increased foreign exchange demand for essential imports has fueled volatility, despite gross external reserves improving to $6.9 billion by mid-2024.

Looking ahead, investor confidence may improve in 2025 due to peaceful elections, debt restructuring progress, and IMF disbursements.

However, risks remain from rising hydrocarbon and mining imports and declining cocoa exports, which could weaken Ghana’s trade surplus and current account balance, forecasted to drop to $700 million in 2025 from $1.6 billion in 2024.