Cedi Gains 40.7% Against Dollar in 2025 Recalibrates BoG Balances
Ghana's cedi appreciated by 40.7% against the US dollar in 2025, leading to a GHS 29.1 billion total valuation charge on the Bank of Ghana's financial statements. This appreciation reduced the cedi value of the central bank's foreign currency-denominated assets, reversing gains recorded in 2024 when the cedi weakened. These are accounting entries, not cash losses, and are expected to normalize as exchange rates stabilize.
Ghana's cedi appreciated by 40.7% against the US dollar in 2025, according to the Bank of Ghana. This appreciation resulted in a GHS 29.1 billion total valuation charge on the central bank's financial statements for the year.
This significant gain in the cedi’s value reduced the local currency worth of foreign assets held by the Bank of Ghana. These assets include Special Drawing Rights (SDRs) from the International Monetary Fund, foreign securities, monetary gold, and other foreign balances. When the cedi strengthens, these assets are worth less in local currency terms, leading to accounting charges.
This development fits into broader trends of exchange rate volatility impacting state institutions like the central bank. Such fluctuations can significantly alter the reported value of foreign currency assets, influencing public finance discussions and economic perceptions. Ghana's economy frequently experiences movements in its currency, which can affect import costs, export competitiveness, and the value of foreign debt.
Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, noted these changes are accounting entries, not actual cash movements or losses of underlying assets. He also stated that these valuation effects are expected to normalise as exchange rates stabilise. For 2025, the Bank reported a profit and loss charge of GHS 5.5 billion and an other comprehensive income (OCI) charge of GHS 23.6 billion. This brought the total impact to GHS 29.1 billion.
This outcome reverses gains from 2024, when a weakening cedi increased the local currency value of foreign assets. In 2024, the Bank of Ghana recorded a profit and loss gain of GHS 2.2 billion and an OCI gain of GHS 10.5 billion. Together, these added GHS 12.7 billion to equity in 2024. Observers will monitor how the cedi performs in the coming periods and the subsequent accounting effects on the Bank of Ghana’s balance sheet. Future exchange rate stability will be crucial for managing these valuation impacts.
Source: StatsGH — Ghana's data-driven news platform