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Dollar demand picks up as businesses restock for the rest of the year


Demand for dollars has picked up in Ghana, driven by businesses restocking for the rest of the year. Data from commercial banks shows the manufacturing and energy sectors are leading the charge, with total bids reaching $366 million at the Bank of Ghana's January 2026 foreign exchange auctions.

Market Pressures Mount

Analysts attribute the rising demand to thin foreign exchange supply, expecting market pressure to persist as companies return from holiday breaks and business activity normalizes. Some firms are also preparing to pay dividends to foreign shareholders, further fueling demand.

Cedi Under Pressure

The cedi has depreciated 1.63% year-to-date against the US dollar, driven by sustained foreign exchange demand. Historically, the cedi faces pressure in the first quarter due to import restocking and dividend payments.

Bank of Ghana Assures Stability

The central bank assures there's no cause for panic, maintaining sufficient reserves to meet market demand. Ghana ended 2025 with $13.8 billion in gross international reserves. The Bank of Ghana is monitoring market developments and will intervene as necessary through its foreign exchange intermediation program.

FX Intermediation Programme

The central bank plans to sell up to $1 billion in January 2026 to meet market demand, guided by the new Foreign Exchange Operations Framework. This aims to dampen volatility and support the cedi.

2025 Review

The cedi appreciated 40.67% against the US dollar in 2025, ending at GH¢10.45. The Bank of Ghana is focused on maintaining macroeconomic stability and a flexible exchange rate system.

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