Cedi Slips Amid Seasonal Heat; Dollar Now GH¢12.20
By Praisebell Rosemond Larbi
The Ghana cedi weakened modestly over the past two weeks as seasonal foreign exchange demand resurfaced, placing renewed pressure on the local currency. Analysts say the depreciation reflects typical end-of-year liquidity patterns, coupled with more cautious FX support from the Bank of Ghana.
In the interbank market, the cedi closed the fortnight at a midrate of GH¢11.41 to the US dollar, moving from GH¢11.12 two weeks earlier. The currency also declined against the other major trading currencies, posting losses of 4.62% against the British pound and 3.87% against the euro, to settle at GH¢15.26 and GH¢13.32, respectively.
Performance in the retail market reflected similar dynamics. The cedi edged down 0.41% to GH¢12.05 against the dollar, while slipping 0.94% against the pound and 1.08% against the euro. Retail market rates closed at GH¢15.90 to the pound and GH¢13.95 to the euro.
Databank Research noted that the latest movements remain consistent with expectations of stronger seasonal demand and moderated FX interventions from the central bank. However, the firm emphasised that volatility has been relatively subdued compared to previous years.
“Despite the seasonal pressures, we note that volatility remained relatively contained, compared to historical overshoots, and we believe this can be attributed to robust FX supply and spot interventions,” the research outfit stated. It added that near-term stability is expected within a retail-market band of GH¢11.67 to GH¢12.15 per dollar.
Databank further pointed out that lower Open Market Operation (OMO) yields may have encouraged banks to hold long FX positions, but the Bank of Ghana’s revised Net Open Position limits, now set between 0% and -10% for single-currency exposures have significantly curtailed such moves, reducing potential speculative pressure on the cedi.
The anticipated IMF disbursement, the firm added, should also help soften bearish sentiment and support short-term stability.
Meanwhile, the cedi opened the new week at GH¢12.20 in the retail market. Despite the recent softness, the local currency maintains a year-to-date appreciation of 27.78% since January 1, 2025.
