The Ghanaian cedi is experiencing a period of depreciation against major international currencies, most notably the United States dollar. As of March 13, 2025, data from Cedirates.com, a reliable source for currency information in Ghana, indicates a widening gap between the buying and selling rates of the cedi against the dollar. This disparity reflects the increasing cost of acquiring dollars in the Ghanaian market. Forex bureaus, which cater to individual currency exchange transactions, are quoting rates of GHS15.70 for those buying cedis with dollars and GHS16.10 for those selling cedis to acquire dollars. This difference, known as the spread, represents the bureau’s profit margin and also reflects the underlying market dynamics. The higher selling rate for dollars underscores the stronger demand for the US currency.
The interbank market, where financial institutions trade currencies in larger volumes, presents a slightly different picture. While the spread between buying and selling rates is narrower, the overall trend still points towards cedi depreciation. Banks are buying dollars at GHS15.53 and selling them at GHS15.55. This smaller spread reflects the higher volume and efficiency of the interbank market compared to forex bureaus. However, the rates themselves still indicate the cedi’s weakened position against the dollar. The dynamics in both the forex bureau and interbank markets suggest an ongoing pressure on the cedi, potentially fueled by factors such as import demand, investor sentiment, and macroeconomic conditions.
The cedi’s weakness extends beyond the US dollar, impacting its exchange rate against other major currencies like the British pound and the euro. The average exchange rate for converting pounds to cedis stands at GHS19.81, while converting cedis to pounds costs GHS20.53. Similarly, the euro trades at GHS16.62 when exchanging euros for cedis and GHS17.31 for the reverse transaction. These figures highlight the broader trend of the cedi’s decline in value relative to a basket of international currencies, not just the dollar. This suggests that the depreciation might be influenced by factors impacting the Ghanaian economy as a whole rather than solely by the strength of the dollar.
The Bank of Ghana’s interbank market rates offer a slightly different perspective. The pound is selling at GHS20.17, while the euro is trading at GHS16.95. These rates, while different from the average rates reported by Cedirates.com, still indicate the cedi’s overall weakened position. The variations between the Bank of Ghana rates and those from other sources could be attributed to the timing of data collection, the specific market segment being considered, or the methodology used for calculating average rates. Nonetheless, the overarching trend of cedi depreciation remains consistent across different market segments and data sources.
Money transfer services, which facilitate cross-border remittances, offer another perspective on the cedi’s exchange rate. Companies like LemFi and Afriex, specializing in remittances to Ghana from countries like the US and the UK, provide competitive exchange rates for their customers. LemFi offers a rate of GHS15.39 per dollar for transfers from the US or UK to Ghana, while Afriex provides a slightly more favorable rate of GHS15.23 per dollar. For the British pound, LemFi’s rate is GHS19.80, while Afriex offers GHS20.27. For the euro, Afriex’s rate is GHS17.02, compared to LemFi’s rate of GHS16.65. These rates often reflect real-time market conditions and competition within the remittance sector. They also indicate that the rates offered by these specialized services can be slightly more competitive compared to traditional banking channels or forex bureaus.
Finally, digital subscription payments for services like Netflix, Spotify, and Apple Music, processed through international credit card providers like Visa and Mastercard, incur exchange rates of GHS16.64 and GHS16.66 per dollar, respectively. These rates are generally higher than the interbank or money transfer rates. The higher rates can be attributed to factors such as processing fees, currency conversion charges levied by the card providers, and the inherent risks associated with international transactions. This highlights the variations in exchange rates depending on the specific transaction type and the intermediaries involved in the process. Consumers paying for digital subscriptions in Ghana effectively face a higher cost due to these exchange rate disparities. In conclusion, the Ghanaian cedi’s depreciation against major international currencies is evident across various market segments, from forex bureaus and interbank trading to money transfer services and digital subscription payments. While the specific rates vary depending on the transaction type and provider, the overall trend points toward a weakening cedi, reflecting the complex interplay of market forces, economic conditions, and international currency fluctuations.
