Cedi trades above GH¢11 as dollar demand rises
The Ghana cedi has crossed GHS11 to the US dollar in commercial bank trading, reflecting mounting pressure in the foreign exchange market despite the local currency’s impressive year-to-date gains.
Checks by The New Finder show some banks quoting the dollar at GHS11.00, while others are selling as high as GHS11.30.
The Bank of Ghana’s official interbank rate stood at approximately GHS10.90 as of yesterday, with forex bureaus selling at higher levels of around GHS12.20.
Despite this recent depreciation, the cedi remains Africa’s best-performing currency against the US dollar in 2025.
According to Databank Research, the local unit has appreciated by about 36 per cent year-to-date, although this is down from gains of more than 40 per cent recorded earlier in August.
Rising Demand and Limited Supply
Market analysts point to seasonal pressures, as businesses seek dollars to finance end-of-year imports ahead of the Christmas season.
Others are buying in anticipation of future scarcity, further tightening supply.
Commercial banks have also highlighted limited inflows from the central bank as a contributing factor.
Recent auction data shows demand from banks exceeding $300 million earlier this month, while the Bank of Ghana supplied only about $100 million.
A report by IC Securities revealed that forward sales in July fell sharply by 53.6 per cent compared to June.
The Bank of Ghana also skipped scheduled auctions on 25 and 29 July, the first such absence since April, fuelling market concerns.
Response from Banks and the Central Bank
Chief Executive of the Ghana Association of Banks, John Awuah, assured that banks are engaging the central bank to manage supply constraints while enforcing new regulatory directives to strengthen the cedi’s use in domestic transactions.
One such measure is the restriction of large foreign exchange withdrawals unless backed by verifiable deposits.
The Bank of Ghana has acknowledged the current market pressures but rejected suggestions of a dollar shortage. Officials insist that part of the demand is speculative and not tied to genuine trade or business needs.
The central bank maintains that the nation’s external reserves remain strong and that interventions will be guided by data and broader market stability rather than speculative pressures.
It has also introduced new measures, including efforts to plug leakages in remittance inflows, which officials say are beginning to yield positive results after earlier declines.
