Cedi surges as BoG strengthens forex interventions
The Cedi continued its upward momentum over the past two weeks, buoyed by the Bank of Ghana’s intensified foreign exchange interventions, which have reinforced confidence and improved liquidity across currency markets.
According to market data, the US dollar–cedi interbank rate closed at GHS12.17, appreciating by 1.93 per cent from GHS12.40.
The local currency also strengthened against the euro and pound sterling, which ended the week at GHS16.25 (up 2.32 per cent) and GHS14.14 (up 2.55 per cent), respectively.
Cedi Rallies Across Retail Market
On the retail market, the cedi posted broader gains, appreciating by 3.45 per cent against the dollar, 5.25 per cent against the pound and 4.67 per cent against the euro, to settle at GHS13.05, GH¢17.15 and GHS15.00, respectively.
In its latest market commentary, Databank Research observed that its earlier projections of a stronger local currency “driven by sustained market support and seasonal export inflows have largely materialised.”
The firm noted that the surge in global gold prices, now exceeding USD4,000 per ounce, has further bolstered Ghana’s foreign exchange reserves, helping to stabilise the market and boost the cedi’s performance.
BoG’s New FX Auction Strategy
More importantly, Databank highlighted that the Bank of Ghana’s decision to double the frequency of its foreign exchange auctions has “enhanced market flexibility and anchored expectations.”
The central bank has adopted a spot-based auction mechanism that allows licensed banks to bid competitively, improving price discovery and narrowing bid–ask spreads across the market.
According to Databank, “Considering the recent success with the IMF’s fifth review mission and the Bank’s plans to meet forex demand robustly through October 2025, our optimism remains reinforced.
We expect the US dollar–cedi pair to bounce back to GHS11.50 on the interbank market and GHS12.75 on the retail market in the coming weeks.”
Outlook and Current Rates
The cedi opened this week trading at around GHS13.30 per dollar at forex bureaus, extending its rally and bringing its year-to-date gain to 18.97 per cent.
On the interbank market, the Bank of Ghana quoted the dollar at GHS11.90, reflecting the continued strength of the local currency amid improved policy credibility and steady inflows from the central bank’s Domestic Gold Purchase Programme.
