The Ghanaian cedi experienced further depreciation against the United States dollar on Thursday, January 30, 2025, continuing a trend of weakening against major international currencies. Data compiled from Cedirates.com, a reliable source for currency information in Ghana, reveals a buying rate of GHS15.15 per dollar and a selling rate of GHS15.57. This signifies a slight decline compared to the previous day’s rates, with the buying rate dropping by 2 pesewas and the selling rate by 3 pesewas. The weakening cedi reflects the ongoing challenges faced by the Ghanaian economy and the pressure on its currency amidst global economic uncertainties. This decline underscores the need for economic strategies aimed at stabilizing the cedi and mitigating the impact of its depreciation on the cost of imported goods and services.
Forex bureaus, which play a significant role in the retail foreign exchange market, offered slightly different rates. Individuals seeking to exchange cedis for dollars faced a rate of GHS15.45, while those converting dollars to cedis received a rate of GHS15.90. This difference, known as the spread, represents the profit margin for the forex bureaus and reflects the dynamic nature of currency exchange. The varying rates across different exchange platforms highlight the importance of comparing rates before conducting transactions to secure the most favorable exchange value. Moreover, the spread indicates the inherent costs associated with currency conversion, emphasizing the importance of efficient financial planning for individuals and businesses engaged in international transactions.
The interbank market, where banks trade currencies amongst themselves, presented a slightly more favorable exchange rate. The buying rate for dollars stood at GHS15.24, while the selling rate was GHS15.26. The narrower spread in the interbank market compared to forex bureaus is typical, reflecting the larger volumes of transactions and the lower operational costs for banks. This difference underlines the potential cost savings for businesses and individuals with access to interbank rates. However, access to the interbank market is usually limited to larger institutions and corporations, leaving individuals reliant on forex bureaus and other retail exchange platforms.
The Ghanaian cedi’s weakness extended to other major currencies, including the British Pound and the Euro. The average exchange rate for converting pounds to cedis was GHS18.75, while the rate for converting cedis to pounds was GHS19.45. Similarly, the Euro traded at GHS15.67 for exchanging euros for cedis and GHS16.29 for exchanging cedis for euros. These figures further illustrate the challenges facing the Ghanaian cedi in the global foreign exchange market. The depreciation against these major currencies can impact import prices, particularly for goods and services sourced from the Eurozone and the United Kingdom, potentially contributing to inflationary pressures.
On the Bank of Ghana interbank market, the rates were slightly different. The British Pound was selling at GHS18.96, while the Euro was trading at GHS15.89. The Bank of Ghana, as the central bank, plays a crucial role in influencing exchange rates through monetary policy and interventions in the foreign exchange market. These rates, though slightly different from the average rates, reflect the central bank’s efforts to manage the exchange rate and maintain stability in the financial system. The interventions aim to mitigate excessive volatility and ensure a smoother functioning of the currency market.
Money transfer services, which are increasingly popular for remittances and international payments, offered competitive rates. LemFi provided a rate of GHS15.20 per dollar for transfers from the US or the UK to Ghana, while Afriex offered a slightly higher rate of GHS15.25. For the British Pound, LemFi and Afriex offered rates of GHS18.89 and GHS19.34 respectively. For the Euro, Afriex offered a rate of GHS15.89, while LemFi provided a rate of GHS15.84 per €1. These platforms often offer competitive rates compared to traditional banks and money transfer operators, making them an attractive option for individuals sending money to Ghana. The convenience and speed of these digital platforms have further contributed to their growing popularity. However, it’s crucial for users to compare rates and fees across different platforms to ensure they receive the best value for their transactions.
Finally, for digital subscription payments using Visa and Mastercard, such as for services like Netflix, Spotify, or Apple Music, the exchange rate was GHS17.37. This rate is significantly higher than the interbank and forex bureau rates, highlighting the premium charged for international transactions using these payment methods. This difference underscores the importance of understanding the exchange rates applied to different payment methods. Consumers should be aware of the potential cost implications when making international payments and consider alternative payment options if available to minimize exchange rate losses. The variation in exchange rates across different platforms and services emphasizes the need for financial awareness and informed decision-making when engaging in international transactions.
