In early June 2025, the cedi, Ghana’s currency, was recognized as Africa’s best-performing currency. However, its reign was short-lived due to a sudden surge in demand for U.S. dollars, along with a sharp decline in the availability of physical U.S. dollars at local banks.
In the past week, several financial institutions in Accra and other major cities have reported a shortage of physical dollars. Bank officials have either turned away customers attempting to withdraw dollars for travel and business transactions or have informed them to wait indefinitely. This shortage has created a gap between official and parallel market rates, further weakening confidence in foreign exchange stability.
“There simply isn’t enough dollar liquidity in the system right now,” a bank official told Business Insider Africa. “We’re telling clients to wait until next week when we expect some fresh inflows from correspondent banks and central bank interventions.”
Cedirates, an online currency monitoring platform, reported an increase in dollar rates this week as banks and foreign exchange facilities struggled to meet customer demands.
Ghana’s inflation rate fell to a three-year low in May, reaching 18.4% compared to 21.2% in April. Experts attribute this decline to a stronger currency and lower import costs. However, the recent dollar shortage threatens that progress. Experts warn that if the physical dollar shortage persists, it could fuel inflation and hinder Ghana’s economic recovery. Nonetheless, according to Cedirate, Ghana is expected to receive a new supply of dollars next week, which could provide short-term relief.
The financial climate in the West African country may soon take a positive turn. In December 2024, the International Monetary Fund (IMF) approved a $360 million disbursement to Ghana under its Extended Credit Facility (ECF) program. This approval followed the successful completion of the country’s third performance review. Financial experts anticipate that the disbursement will stabilize the cedi and bolster the economy.
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