The Ghana cedi has recovered significantly against the US dollar in the past two weeks, reducing its year-to-date losses from 11% to roughly 6%. This strong rebound is primarily due to substantial foreign exchange supply from the Bank of Ghana. The cedi now exchanges at GHS 12.10 to one US dollar in the retail market.
The central bank's intervention has been more aggressive than anticipated, providing considerable liquidity to the market. This increased flow of foreign currency has eased speculative pressures on the cedi. The local currency strengthened by 5.66% against the US dollar in the interbank market.
This appreciation marks a notable shift in the narrative for Ghana's economic stability. A stronger cedi can help curb inflation, which has been a major concern for businesses and households. It also makes imports cheaper, potentially lowering the cost of living and production. The Bank of Ghana's actions reflect its commitment to maintaining currency stability amid broader economic challenges.
Databank Research noted that the outcome exceeded their expectations for Bank of Ghana interventions. They had projected lighter interventions, but sizeable discounted foreign exchange liquidity injections changed this path. These injections effectively disrupted speculative attitudes, leading to the average 6% appreciation. Databank Research highlights that past interventions of US$1.2–1.5 billion have historically improved market stability.
Analysts expect further foreign exchange supply to support the cedi towards GHS 10.90 per US dollar in the coming weeks. This projection depends on sustained foreign exchange liquidity inflows. A significant portion of the US$1.2 billion allocation for June 2026 has yet to be disbursed, indicating potential for continued currency strengthening. Businesses and investors will closely monitor these developments for their impact on trade and investment.
On the interbank market, the cedi settled at a midrate of GHS 11.22 to one American greenback. It also strengthened by 6.76% against the British pound and 6.24% against the Euro. This brought the midrates to GHS 14.83 to a pound and GHS 12.86 to a euro, respectively. In the retail market, the cedi firmed by 2.07% against the US dollar. It also gained 2.19% against the pound and 2.25% against the euro. The retail market now sees the cedi at GHS 16.00 per pound and GHS 13.90 per euro.
The Year-To-Date gain for the cedi now stands at 0.62%. This positive turn provides a boost to consumer and investor confidence. A stable cedi is crucial for economic planning and attracting foreign direct investment. Government and regulatory bodies will likely continue to monitor foreign exchange flows to maintain this positive momentum.