Fresh data from the Bank of Ghana (BoG) suggests remittance inflows rebounded strongly in the latter half of 2025, contradicting earlier warnings of a steep decline triggered by cedi appreciation.
The figures raise questions about whether the alarm sounded by Governor Dr. Johnson Pandit Asiama in August 2025 was premature or reflected a temporary disruption that quickly reversed.
At the launch of the Bank of Ghana Chair in Finance and Economics at the University of Ghana in August 2025, Dr. Asiama revealed that remittance inflows had declined by almost 50 percent. He attributed the fall to rapid cedi appreciation that disrupted diaspora sending patterns.
“The appreciation of the cedi so far, Ghanaians are interpreting this differently, and it is part of the problem. People who used to send remittances for projects have suddenly stopped, and so we have observed a near 50 percent decline in remittance inflows,” the Governor stated.
At that time, the cedi had surged dramatically, gaining over 40 percent against the United States (US) dollar, 31 percent against the British pound and 24 percent against the euro.
However, the central bank’s November 2025 Summary of Economic and Financial Data presents a markedly different picture. According to the report, inward private transfers reached US$1.87 billion in March 2025, US$3.93 billion in June 2025 and US$5.98 billion in September 2025.
By December 2025, cumulative remittances for the year stood at approximately US$7.79 billion, representing a significant increase from the US$6.65 billion recorded for the full year 2024.
The upward trend suggests the earlier decline was temporary, tied to the cedi’s rapid and unusual appreciation. Behavioral factors likely played a role as migrants paused transfers to reassess value during the currency’s volatile period.
Seasonal patterns typically show remittances rising strongly toward the second half of the year, which could also explain part of the recovery. The sharp appreciation that triggered the dip in inflows earlier in the year has since moderated, possibly restoring predictability for Ghanaians abroad who plan regular transfers to family members and investment projects.
Economic analysts note that stable or gradually adjusting exchange rates tend to encourage more consistent remittance flows compared to periods of sharp, unpredictable currency movements.
Major source countries for Ghanaian remittances include the United States, United Kingdom, Germany, Italy and Canada. The diaspora community has consistently demonstrated commitment to supporting families at home, though the speed and amount of transfers respond to exchange rate movements and economic circumstances in both sending and receiving countries.
The August warning from Dr. Asiama captured a real and sudden disruption that appeared alarming at the time. Financial institutions reported reduced traffic at foreign exchange counters, and money transfer operators noted slower transaction volumes during the period of rapid cedi appreciation.
Remittances serve multiple purposes in recipient households, including covering daily expenses, funding education, supporting healthcare needs, financing housing construction and providing capital for small businesses.
The BoG closely monitors remittance flows as a key component of foreign exchange supply. These inflows help stabilize the cedi, support import financing and contribute to overall macroeconomic stability alongside export earnings and foreign direct investment.
Strong remittance inflows have helped improve Ghana’s external balances. Bank of Ghana data shows the country recorded a current account surplus of US$3.83 billion by September 2025, supported significantly by rising private transfers alongside strong gold export earnings.
The situation leaves policymakers with a reminder of how dynamic Ghana’s economy is and how sometimes theory may not reflect reality, given the various factors at play.
