BTA2023 The Ghanaian cedi began the week with a slight depreciation against major foreign currencies, following a mixed performance last week.
On the retail market, the cedi lost 0.16% against the US dollar, bringing its year-to-date depreciation to 1.11%. It traded at an average of GH¢15.79 per dollar last week and opened this week at GH¢15.80 per dollar.
While the cedi gained 0.31% against the euro, it fell by 0.38% against the British pound.
Inflation Trends and Economic Outlook
Inflation in February 2025 slowed to 23.1%, down from 23.5% in January, marking the second consecutive decline. The drop was mainly due to lower food inflation, which fell to 28.1%.
Additionally, month-on-month inflation decreased from 1.7% in January to 1.3% in February.
Analysts predict that the easing inflation could boost market confidence, which may help stabilize the cedi in the near term.
Upcoming Fiscal Budget Announcement
Ghana’s Finance Minister is set to present the 2025 fiscal budget to Parliament on March 11, 2025. Market watchers believe the government’s fiscal strategy will play a key role in determining the cedi’s stability for the rest of the year.
For now, analysts expect relative stability in the foreign exchange market, pending economic policy directions from the government.
