The Ghana cedi (GH₵) is projected to continue its upward momentum this week, buoyed by improved market sentiment, Bank of Ghana (BoG) support, and renewed investor confidence, according to Databank Research’s weekly currency update.
Last week, the local currency emerged as the top-performing currency among 15 sub-Saharan African countries, continuing its upward trajectory on the back of robust liquidity and stabilizing macroeconomic fundamentals. The Ghana cedi recorded notable appreciation across major currencies: 6.25% against the US dollar (USD), 7.61% against the British pound (GBP), and 5.81% against the euro (EUR).
By the end of the trading week, the local currency was quoted at a mid-rate of GH¢13.60 per USD on the retail forex market, supported by a market supply of USD 378.6 million.
In a significant endorsement of Ghana’s economic recovery efforts, S&P Global Ratings on May 9, 2025, upgraded Ghana’s long- and short-term foreign currency sovereign credit ratings from Selective Default (SD) to ‘CCC+/C’, while affirming local currency ratings at ‘CCC+/C’ with a stable outlook.
The ratings agency attributed the upgrade to improved economic growth, ongoing fiscal reforms, a stronger external position, and a growing track record of prudent public financial management, particularly through election cycles.
S&P’s decision reflects growing international optimism in Ghana’s economic trajectory, particularly under the stewardship of Finance Minister Dr. Cassiel Ato Forson.
With macroeconomic reforms taking root, foreign exchange conditions improving, and international credit ratings trending upward, analysts anticipate the cedi will maintain its strength in the near term.
“Investor sentiment is improving, and the central bank’s interventions continue to support the local unit,” Databank Research noted. “We expect further appreciation of the cedi in the coming week.”
The rating upgrade is expected to bolster Ghana’s external financing opportunities, reduce debt vulnerabilities, and provide a firmer foundation for long-term currency stability.
