KEY POINTS
- The cedi rises to GH¢12.10 per US dollar.
- Central bank interventions boost market confidence.
- Analysts expect continued stability in coming weeks.
The Ghana cedi has done one of its best in months, thanks to better investor mood and the central bank’s steady actions. The local currency has gained strength against major currencies in the past two weeks, making up for most of its earlier losses.
At the retail market, one US dollar now trades at GH¢12.10, while on the interbank market, the cedi appreciated to GH¢10.85 per dollar marking a 9.68 percent gain. It also strengthened 10 percent against the pound to GH¢14.42 and 9.16 percent against the euro to GH¢12.61.
Central bank inflows and market confidence drive gains in the cedi
Analysts attribute the cedi’s strong rebound to enhanced forex liquidity from the Bank of Ghana and improved market confidence, which led some traders to unwind speculative positions. Retail market activity mirrored this momentum, with the cedi advancing 6.53 percent against the dollar, 5.54 percent against the pound, and 5.26 percent against the euro.
According to Databank Research, the outlook for the cedi’s strong performance remains positive. “Sustained foreign exchange inflows and renewed confidence ahead of the budget presentation should anchor this outlook,” it said, noting that upcoming disbursements, including a projected US$385 million inflow in December, could further support stability.
Outlook remains firm as currency gains momentum
Market analysts expect the cedi’s strong performance to continue in the near term, supported by ongoing reforms, rising gold reserves, and shifting reserve preferences among central banks.
Databank Research further noted that gold’s reclassification as a top-tier liquidity asset under Basel III “Endgame” reforms has boosted global confidence in hard assets.
The local currency has gained 28.84 percent against the US dollar so far this year, showing how strong it is despite changing market conditions.
