This paper investigates the main factors behind exchange rate volatility in Ghana using yearly time series data from 1988 to 2024. The study applies an ARDL bounds test approach for cointegration to test the long run relationship between exchange rate movement in Ghana and foreign direct investment, current account deficit, interest rate, political stability, terms of trade and external debt. The results of the model suggest that external debt, past exchange rate and current account deficits cause depreciation of the Ghana Cedi. It also shows that foreign direct investment inflows and terms of trade strengthen the Ghana cedi. The error correction term or the speed of adjustment parameter is significant and negative validating the long run relationships. It shows that 30% of deviations from equilibrium of the exchange rate in Ghana is corrected in one period.