Cedi dips amid rising dollar demand on currency market
The Ghana cedi has seen its first slight depreciation in over a month, following a surge in demand for the US dollar that many analysts link to recent remarks made by President John Dramani Mahama.
The local currency, which had held steady on the interbank market since mid-April, dipped marginally on Wednesday, trading between GH¢10.20 and GH¢10.28 to the dollar, up from GH¢10.15–GH¢10.28 the previous day. This movement comes just a day after President Mahama stated that the cedi’s “true value” lies between GH¢10 and GH¢12 per dollar, a comment that has prompted speculation in currency markets.
Market observers say the president’s statement—while likely aimed at reassuring exporters—has been interpreted by some as a signal that the cedi has bottomed out, encouraging demand for the dollar in anticipation of a potential slide in the local currency.
Adding to this trend, the Bank of Ghana (BoG), which offered $100 million to the market on Tuesday, ended up auctioning $109 million—an unusually high volume compared to recent weeks, where less than half of such offers were typically absorbed.
“The president’s comment appears to have sparked speculative interest,” said one currency trader. “Market players who had held back began buying dollars more aggressively, betting that the cedi might weaken further towards GH¢12.”
Until now, the central bank has carefully refrained from publicly stating a preferred exchange rate target, a move credited with helping reduce speculation and stabilize the currency. This latest shift in sentiment has raised concerns about possible short-term volatility, especially as the cedi had been enjoying a period of relative strength.
The Bank of Ghana is expected to monitor developments closely in the coming days. Thursday’s trading session, the last before the Eid al-Adha holiday break, may provide further clues as to whether the depreciation is a temporary blip or the beginning of a broader trend.
Despite the slip, the cedi has still appreciated significantly in 2025, supported by improved forex inflows, tighter monetary policy, and relative macroeconomic stability. However, this recent episode highlights the fragile nature of currency confidence and the sensitivity of the market to official commentary.
