The Ghana cedi has posted modest gains in recent weeks, supported by favourable external conditions and improved investor sentiment, according to market analysts.
Over the past two weeks, the local currency initially faced mild demand pressures but recovered in the latter part of the period as global “sell America” sentiment weakened the US dollar and provided support for emerging and frontier market currencies.
In the interbank market, the cedi appreciated by 0.09 percent against the US dollar, 0.86 percent against the British pound, and 1.16 percent against the euro, closing at mid-rates of GH¢10.97 to the dollar, GH¢14.81 to the pound, and GH¢12.93 to the euro.
The positive trend was also reflected in the retail market, where the currency strengthened by 0.6 percent against the dollar, 1.29 percent against the pound, and 1.11 percent against the euro. It ended the period at mid-rates of GH¢11.63 to the dollar, GH¢15.55 to the pound, and GH¢13.50 to the euro.
Research firm Databank Group attributed the cedi’s recent appreciation to broader gains across major Sub-Saharan African currencies, driven largely by sustained weakness in the US dollar.
The firm expects the currency to maintain its positive momentum in the near term, noting that expectations of continued dollar softness could moderate demand for the greenback, particularly amid geopolitical uncertainties including tensions involving Iran.
Analysts also pointed to targeted foreign exchange interventions by the Bank of Ghana, supported by a US$1 billion facility being deployed gradually to meet market demand, as an additional factor strengthening the local currency.
Databank projects that the cedi could appreciate further to an interbank mid-rate range of GH¢10.85 to GH¢10.95 per dollar over the next two weeks, with retail rates likely to hover around GH¢11.55 to GH¢11.60, depending on market inflows.
At the start of this week, the cedi was trading at about GH¢11.70 to the dollar in the retail market, bringing its year-to-date appreciation against the US currency to approximately 4.95 percent.
