The Ghana cedi depreciated by 2.4% against the US dollar in January 2025, marking a sharper decline compared to the 1.3% recorded during the same period last year, the Bank of Ghana has revealed.

By the end of January, the local currency was trading at GH¢15.06 to the US dollar on the interbank market. Similarly, the cedi weakened by 3.0% against the euro, selling at GH¢15.69, and depreciated by 0.8% against the British pound, which traded at GH¢18.55.

In the retail forex market, the cedi’s performance was even more concerning. As of January 17, 2025, the local currency had depreciated by 2.94% to the dollar, bringing its year-to-date loss to 3.87%.

This decline was driven by heightened demand from the manufacturing and energy sectors, coupled with the Bank of Ghana’s auction of its first US$20 million to Bulk Oil Distribution Companies (BDCs).

The cedi’s depreciation to the dollar in January was its steepest decline since the start of the year, with the currency trading at a mid-rate of GH¢16.15 per dollar during the third week of the month.

Market analysts attribute the cedi's challenges to sustained pressure from key sectors and the demand for foreign exchange. The Bank of Ghana’s interventions, such as the forex auction, aim to stabilize the currency, but rising demand for dollars continues to exert downward pressure.