ACCRA — In a stunning reversal on Ghana’s currency market, the U.S. dollar tumbled to GH₵10.80 by midday Friday, May 23, registering one of the sharpest single-day declines in recent history, according to Accra Street Journal. The move delivered a decisive boost to the Ghanaian cedi, which has been on a quiet but steady climb since late March.
Trading opened with the dollar quoted at GH₵11.60, but within the first 30 minutes, it had slumped to GH₵11.38. A second wave of declines pushed it down further to GH₵11.22, and by midday, Bloomberg trading data confirmed the rate had hit GH₵10.80.
The drop, while anticipated by some market watchers, occurred at a pace few predicted. In the weeks prior, speculation swirled that the dollar could test the GH₵10 threshold, but Friday’s plunge has now placed that level within striking distance.
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Sources at Accra Street Journal attribute the surge in the cedi’s value to a significant decline in demand for the dollar, compounded by the Bank of Ghana’s (BoG) dollar liquidity operation on Thursday. Although the BoG made a large offering, less than half was absorbed by the market — a strong indicator that appetite for U.S. currency is fading.
The dramatic shift in forex dynamics coincides with the conclusion of the Monetary Policy Committee’s (MPC) latest meeting. Policy decisions expected in the coming days could further anchor the cedi’s bullish run, analysts told Accra Street Journal.
Ghana’s foreign reserves currently stand at 4.7 months of import cover as of April-end, up from three months a year ago. This development is feeding renewed investor optimism, bolstered by expectations of continued IMF disbursements and fiscal reforms.
The dollar, which traded as high as GH₵14.25 earlier in 2025, has now slipped back to levels last seen in 2022, signaling a broader rebalancing of market sentiment. Forex traders report that dollar hoarders have begun offloading reserves, pressured by a more stable interbank supply and a strengthening cedi.
Globally, investor confidence in the dollar has been rattled by geopolitical risk and economic policy uncertainty. According to Accra Street Journal’s analysis, uncertainty around former U.S. President Donald Trump’s proposed trade tariffs has sent many global investors fleeing to gold and other safe-haven assets, undercutting dollar demand.
Meanwhile, domestic confidence is growing. Ghana’s commitment to fiscal discipline, reinforced by the establishment of a Gold Board and structured monetary interventions, is strengthening the credibility of the cedi.
With momentum building, analysts anticipate the local currency could maintain its appreciation trajectory through the coming week — barring any global shocks.
Last Updated on May 24, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
