Cedi set to stay strong in Q2 — Databank

By Praisebell Rosemond Larbi

The Ghana cedi is expected to sustain its recent gains against the US dollar through the second quarter of 2025, driven by strong foreign exchange support and renewed investor confidence, according to a new report by Databank Research.

The report attributes the cedi’s resilience to a combination of *targeted interventions by the Bank of Ghana, anticipated inflows from the **International Monetary Fund (IMF), and *shifting global investor sentiment away from the US dollar.

Databank notes that the central bank’s active engagement in the forex market—through strategic liquidity injections and policy clarity—has anchored market expectations and helped stabilize the cedi.

“These interventions will continue to moderate volatility, smooth out imbalances, and reinforce investor trust in the local currency,” the report stated.

(“smoothen out” corrected to “smooth out”)

The cedi has appreciated sharply in recent weeks, currently trading at about GH¢12.90 to the US dollar in the retail market, marking one of its most aggressive rebounds in recent times.

Global economic shifts have also played a role in easing pressure on the cedi. According to Databank, rising uncertainty over the US economy—driven by trade tensions and fiscal instability—is reducing investor appetite for dollar-denominated assets. This has created positive tailwinds for Sub-Saharan African currencies, including the Ghanaian cedi.

On the domestic front, the report highlights improved macroeconomic stability, supported by Ghana’s policy reforms under the ongoing IMF programme, as a key factor in reducing speculative activity and capital flight.

“With improved confidence and lower capital slippage, the cedi is well-positioned to maintain its strength in the coming months,” the report noted.

Databank also emphasized the importance of the IMF’s Extended Credit Facility (ECF) in supporting the country’s foreign exchange reserves. Ghana recently reached a staff-level agreement on the fourth review of the US$3.0 billion programme. Upon board approval, the country is expected to receive a US$370 million disbursement.

“We expect this inflow to augment existing FX buffers and enhance supply-side interventions, shielding the cedi from future external shocks,” the report added.