Cedi Strengthens as Bank of Ghana Intensifies Forex Market Support
The Ghana cedi has recorded strong gains over the past two weeks, buoyed by the Bank of Ghana’s (BoG) active interventions in the foreign exchange market and improved external inflows. The local currency’s rally spilled over into other segments of the market, reflecting renewed investor confidence and a more stable trading environment.
On the interbank market, the cedi appreciated against the major trading currencies, closing at GH¢12.17 to the US dollar — a 1.93% gain from GH¢12.40. It also strengthened against the euro and the pound sterling, which ended the period at GH¢16.25 (+2.32%) and GH¢14.14 (+2.55%) respectively.
Similar momentum was seen on the retail side, where the local currency appreciated by 3.45% against the dollar, 5.25% against the pound, and 4.67% against the euro, settling at GH¢13.05, GH¢17.15 and GH¢15.00, respectively.
Analysts at Databank Research said the performance aligned with their earlier projection of a stronger cedi, supported by seasonal foreign exchange inflows from cocoa and gold exports, as well as continued central bank interventions. They noted that soaring gold prices — surpassing the US$4,000 per ounce threshold — had also bolstered Ghana’s external earnings.
The report further attributed the improved market sentiment to the BoG’s decision to double the frequency of its foreign exchange auctions with commercial banks. This policy shift, it said, enhanced liquidity, reduced speculation, and narrowed bid–ask spreads across trading platforms.
“The recent approval of Ghana’s fifth review under the IMF programme and the central bank’s plan to meet strong FX demand this month have boosted confidence. We anticipate the cedi could firm further to around GH¢11.50 on the interbank market and GH¢12.75 in the retail segment,” Databank observed.
As trading opened this week, the cedi was quoted at GH¢13.30 per US dollar at major forex bureaus. The currency’s year-to-date appreciation now stands at 18.97%, signaling a notable recovery in market sentiment and external stability.
