Ghana’s cedi posted mixed movements over the past two weeks, easing in the interbank market amid renewed demand pressures but strengthening slightly in retail trading, while Zambia’s kwacha extended gains on strong copper export inflows.
In Ghana, the cedi weakened modestly in the interbank market, with the dollar closing at a mid-rate of 10.88 cedis, compared with 10.70 at the start of the review period. The pound and euro also softened against the cedi, with GBP/GHS and EUR/GHS declining by 2.70 percent and 2.57 percent to end at 14.78 and 12.80 respectively.
By contrast, retail market rates showed a firmer cedi. The dollar eased to 11.90 cedis from 12.15, while the pound and euro strengthened by 1.58 percent and 2.18 percent to close at mid-rates of 15.80 and 13.75 respectively.
Market participants said the divergence reflected stronger foreign currency demand relative to supply in the interbank market, while softer retail demand prompted marginal price adjustments to attract transactions.
Despite the recent interbank weakness, analysts expect the cedi to regain ground in the near term, supported by anticipated foreign exchange injections aimed at easing market pressures and anchoring expectations. Some traders also pointed to broader global factors that could provide relief, including sustained dollar softness driven by portfolio reallocation away from U.S. Treasuries, even as yields remain elevated.
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Expectations of a more accommodative U.S. monetary policy stance later in the year could further support emerging and frontier market currencies, dealers said. Under these conditions, some market participants see the cedi gravitating back toward the 10.70-per-dollar level in the coming weeks, barring renewed shocks.
In Zambia, the kwacha continued its strong run, gaining more than 12 percent year-to-date. The currency closed the fortnight at 19.6385 per dollar, strengthening sharply from 22.1363 previously.
The rally has been underpinned by robust copper export inflows, as elevated global prices boost export earnings and help rebuild foreign exchange reserves. Zambia is Africa’s second-largest copper producer, and the metal remains the dominant driver of external liquidity.
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Analysts expect the kwacha to remain supported through the first half of 2026, with some forecasting further appreciation toward 18.50 per dollar, provided copper prices remain firm and external conditions stay stable. However, they cautioned that any sharp reversal in commodity prices or deterioration in global risk sentiment could test the currency’s resilience.
