Ghana’s cedi has recorded notable gains across major currencies over the past two weeks, buoyed largely by subdued foreign exchange demand in both the interbank and retail markets.
In the interbank market, the local currency appreciated by 3.74% against the US dollar, closing the period at a mid-rate of GH¢10.70. The cedi also strengthened against the British pound and the euro, posting gains of 4.27% and 4.81% respectively, to settle at GH¢14.38 to the pound and GH¢12.47 to the euro.
A similar trend was observed in the retail segment of the forex market. The cedi gained 1.65% against the dollar, 2.49% versus the pound, and 2.85% against the euro, closing at GH¢12.15 per dollar, GH¢16.05 per pound, and GH¢14.05 per euro.
Market watchers attribute the recent appreciation largely to weaker demand for foreign currency, as import activity remained relatively muted and corporate demand for forex slowed during the period.
However, analysts caution that the currency could face renewed near-term pressure as front-loaded import demand begins to resurface and year-end foreign exchange buffers unwind, potentially tightening forex supply.
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Despite these risks, analysts expect any depreciation pressures to remain modest, supported by improving market sentiment and expectations surrounding the gradual disbursement of the US$1 billion Foreign Exchange (FX) Intermediation Programme scheduled to begin in January 2026.
According to Databank Research, while global developments — including tensions between former US President Donald Trump and the US Federal Reserve over investigations involving Fed Chair Jerome Powell — could soften the US dollar in the short term, the impact on Ghana’s currency may be limited.
“While recent Fed–Trump tensions may soften US dollar performance in the near term, we expect a weak multiplier effect from these dynamics as local demand pressures resurface,” the research firm noted.
As of the start of this week, the cedi was trading at GH¢12.25 to the US dollar in the retail market, while the Bank of Ghana quoted the interbank rate at GH¢10.71 to the dollar, reflecting a continued divergence between official and retail market pricing.
