Cedi rebounds over 3% after recent market strain

The Ghana cedi has strengthened over the past two weeks, supported by the Bank of Ghana’s foreign exchange interventions, which have helped stabilize markets and improve liquidity.

That’s according to Databank Research, which attributes the cedi’s firming to seasonal foreign exchange inflows from commodity exports, record gold prices above US$4,000 per ounce, and the central bank’s decision to double its FX auction frequency.

The USD/GHS interbank rate closed at GHS 12.17, from GHS 12.40, while the euro and pound sterling settled at GHS 16.25 and GHS 14.14 respectively on Monday.

In the retail market, the cedi gained further — appreciating 3.45%, 5.25%, and 4.67% against the dollar, pound, and euro to close at GHS 13.05, GHS 17.15, and GHS 15.00.

Analysts say the local currency continues to benefit from stronger inflows and improved market confidence following Ghana’s successful IMF fifth review.

The Bank of Ghana is also expected to provide robust market support in October to help sustain the momentum.

Meanwhile, the World Bank’s Africa Pulse Report ranks the Ghana cedi as Africa’s best-performing currency after the first eight months of 2025, appreciating by more than 20 percent since January.

The report attributes this performance to fiscal discipline, sound monetary policy, and renewed investor confidence following Ghana’s debt restructuring.

The central bank has also indicated plans to inject about $1.15 billion into the forex market to manage seasonal pressures.

But market watchers caution that sustaining these gains will depend on continued fiscal prudence, export diversification, and structural reforms to anchor long-term stability

Comments

Fitch Solutions retains 2025 growth rate projection at 4.2%

Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...

Kofi Ahovi

Search This Blog