Databank Research projects cedi surge to stabilise in coming weeks
By Praisebell Rosemond Larbi
The Ghana cedi’s recent strong rally is projected to stabilise in the coming weeks as market momentum eases, according to new analysis from Databank Research.
The firm noted that the local currency’s outlook remains broadly positive, supported by sustained foreign exchange inflows, strong policy support, and renewed investor confidence ahead of the 2026 national budget presentation.
Databank explained that the cedi’s appreciation in recent weeks was driven largely by improved liquidity conditions in the foreign exchange market and effective interventions by the Bank of Ghana (BoG).
“In the coming weeks, we expect relative stability following the release of pent-up market momentum. Sustained foreign exchange inflows and renewed confidence ahead of the budget presentation should anchor this outlook,” the report said.
The firm also highlighted that recent Basel III Endgame reforms, which have reclassified gold as a top-tier liquidity asset, have bolstered global confidence in hard assets such as gold, a development that indirectly enhances Ghana’s reserve position and currency stability.
This, combined with the expected USD385 million disbursement from the International Monetary Fund (IMF) in December 2025, is expected to further reinforce near-term optimism for the cedi.
The local currency has posted one of its strongest rallies in months, appreciating sharply on both the interbank and retail markets.
On the interbank market, the cedi strengthened by 9.68 per cent against the US dollar to GHS10.85 per USD, 10.00 per cent against the pound sterling to GHS14.42 per GBP, and 9.16 per cent against the euro to GHS12.61 per EUR.
Retail market activity mirrored the same momentum, with the cedi appreciating by 6.53 per cent against the dollar to close at GHS12.25 from GHS13.05, 5.54 per cent against the pound to GHS16.25 from GHS17.15, and 5.26 per cent against the euro to GHS14.25 from GHS15.00.
Databank attributed these gains to steady foreign exchange inflows from the BoG’s interventions, which have eased pressure on the market and spurred corrective sell-offs among traders previously holding long-dollar positions.
However, the firm cautioned that while the rally may taper as momentum cools, the broader outlook for the cedi remains strong.
“The cedi’s fundamentals are supported by policy consistency, enhanced reserves, and renewed investor confidence in Ghana’s economic management,” the report added.
