The Ghana cedi strengthened modestly against major foreign currencies on Monday, supported by external tailwinds and investor sentiment, market sources said.
Over the past fortnight, the cedi experienced mild demand-driven pressures during the first week, before regaining ground in the latter half as a broad-based “sell America” trend bolstered external support, analysts said.
In the interbank market, the cedi appreciated by zero point zero nine percent against the US dollar, zero point eighty-six percent against the pound sterling, and one point sixteen percent against the euro, closing at mid-rates of GH¢10.97 to the US dollar, GH¢14.81 to the pound, and GH¢12.93 to the euro.
Retail forex rates reflected the positive momentum, with the cedi gaining zero point six percent against the US dollar, one point twenty-nine percent against the pound, and one point eleven percent against the euro. By Monday, the currency was trading at GH¢11.63 per US dollar, GH¢15.55 per pound, and GH¢13.50 per euro in the retail segment.
Databank Research said the cedi’s recent gains mirrored performance across other major Sub-Saharan African currencies, attributing the trend to sustained US dollar weakness.
“Broad-based external support is underpinning the cedi,” the research firm noted. Analysts also cited heightened geopolitical risks, including the potential for a confrontation involving Iran, which has moderated demand for the US dollar and supported local currencies.
The Central Bank’s targeted interventions have further strengthened the cedi. Over recent weeks, a US$1.0 billion facility has been gradually deployed to meet market demand, supporting orderly foreign exchange conditions, Databank Research said.
The interbank cedi is expected to trade within a mid-rate range of GH¢10.85 to GH¢10.95 per US dollar over the next fortnight, with retail rates likely around GH¢11.55 to GH¢11.60 per dollar. Analysts added that accelerated inflows could narrow spreads further.
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Meanwhile, in early trading on Monday, the cedi exchanged at GH¢11.70 to the US dollar in the retail market.
Year-to-date, the cedi has gained four point ninety-five percent against the US dollar, reflecting a combination of external support, Central Bank interventions, and improved market sentiment.
Market participants noted that while gains are modest, the trajectory suggests continued resilience amid ongoing dollar softness and broader regional currency trends.
Investors and importers are closely monitoring cedi movements, given their impact on trade, inflation, and corporate financing costs.
The Ghanaian currency’s modest recovery comes amid a backdrop of cautious optimism, with analysts expecting further stabilisation as global liquidity conditions remain favourable for emerging market currencies.
The Ghana cedi has been under pressure in recent months due to a combination of domestic and external factors, including elevated inflation, persistent current account deficits, and volatility in global foreign exchange markets. Ghana’s reliance on imports for fuel, food, and industrial inputs has historically placed demand-side pressure on the cedi, especially against the US dollar, the pound sterling, and the euro.
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In the interbank market, the Bank of Ghana intervenes to maintain orderly trading and stabilize the currency, deploying foreign exchange liquidity to curb sharp depreciation and smooth volatility. Recently, the Central Bank used a US$1.0 billion facility to meet market demand, helping prevent extreme fluctuations.
Externally, broad movements in major currencies, especially the US dollar, have a strong influence on the cedi. Periods of dollar weakness typically provide tailwinds for Sub-Saharan African currencies, allowing modest appreciation. Conversely, global risk events or dollar strength can pressure the cedi. For example, recent geopolitical concerns, including potential tensions involving Iran, have contributed to a softer dollar, indirectly supporting the Ghanaian currency.
Year-to-date, the cedi has appreciated by approximately 4.95% against the US dollar, reflecting both these external conditions and domestic policy measures. In the retail market, the currency typically trades at a slight premium to interbank rates, reflecting margins applied by forex bureaus and commercial banks.
Ghana’s cedi is also influenced by remittances, foreign portfolio flows, and commodity exports, particularly cocoa and gold, which provide foreign currency inflows. Analysts note that these inflows, coupled with targeted Central Bank interventions, have contributed to the cedi’s recent recovery.
Despite the modest gains, structural challenges remain. Limited foreign exchange reserves, inflationary pressures, and fiscal deficits continue to create vulnerability to currency volatility. Market observers expect the Central Bank to maintain active intervention, while external factors such as US monetary policy and global risk sentiment will likely determine near-term cedi performance.
The current environment highlights a cautious but positive recovery for the cedi, with analysts projecting a potential interbank range of GH¢10.85–10.95 per US dollar and retail rates around GH¢11.55–11.60 per US dollar in the coming weeks, contingent on continued inflows and external support.
