Forex Market: Cedi Slides; Dollar Trades at GH¢11.70
By Praisebell Rosemond Larbi
The Ghana cedi has weakened over the past two weeks as demand for foreign exchange intensified, reflecting a combination of domestic pressures and external factors impacting the currency. Analysts attribute the depreciation to elevated import activity, rising oil prices, and evolving global market conditions.
On the interbank market, the cedi depreciated by 1.55% against the US dollar, 1.66% against the pound, and 0.90% against the euro, closing at mid-rates of GH¢10.94 per dollar, GH¢14.62 per pound, and GH¢12.61 per euro. This trend was mirrored in the retail forex market, where the cedi eased by 0.43% against the dollar to GH¢11.60 and 1.62% against the pound to GH¢15.40, while remaining relatively stable at GH¢13.45 against the euro.
Databank Research explained that the recent depreciation is largely due to renewed foreign exchange demand from importers, coupled with rising system liquidity and increased global crude prices, which have widened Ghana’s import bill. The research house also noted that although gold prices have historically provided a cushion for the cedi, recent price pullbacks, driven by signs of geopolitical de-escalation may reduce this support in the short term.
“On balance, we expect the cedi to maintain a mild depreciation bias in the coming weeks, with stability dependent on sustained forex inflows and evolving external conditions,” the research team said.
The cedi started this week trading at GH¢11.70 to the US dollar in the retail market, representing a year-to-date gain of 4.96%. While the currency has shown resilience compared to prior periods of volatility, the current pressures underscore the sensitivity of Ghana’s exchange rate to both domestic demand and global commodity price fluctuations.
Market observers suggest that continued vigilance by the Bank of Ghana, alongside consistent forex inflows from exports and remittances, will be critical to moderating further depreciation. With oil prices trending higher and import demand rising, the cedi may face intermittent volatility in the near term.
For businesses and individuals reliant on imported goods and services, the recent currency movements could affect costs and pricing, emphasizing the need for careful planning and risk management in forex-dependent transactions.
Overall, while the cedi remains relatively stable in the retail market, analysts warn that its trajectory will be closely tied to global energy prices, gold performance, and domestic forex supply conditions in the coming weeks.
