The Ghana cedi started this week strongly with a marginal gain against the US dollar in the retail market.
It sold at GH¢10.98 in the retail market and GH¢10.25 in the interbank market.
So far this year, the cedi has gained nearly 50% in value against the American greenback.
Last week, the local currency continued to make headway, supported by steady foreign inflows and soft demand for hard currency.
The cedi gained 6.52% week-on-week versus the US dollar in the interbank market, maintaining its position as the top performer among a basket of 15 sub-Saharan African currencies.
On the retail market, it appreciated by 12.3% versus the dollar, 9.6% against the pound and 11.5% against the euro.
However, a Reuters report indicated that offshore investors are gradually returning with forex demand as they seek to repatriate profits from their cedi investments.
Databank Research said “We believe that a steady demand trend may put some modest pressure on the GHS [cedi] in the near term.”
However, it expects ample liquidity in the market this week and the Bank of Ghana’s targeted support to help keep the cedi afloat.
Fitch Solutions Revises End-Year Cedi Rate
Fitch Solutions revised its end-of-year forecast of cedi-to-dollar at GH¢13.0, from its previous projection of GH¢15.5 to one American greenback.
It is also forecasting a 12.9% appreciation against the US dollar in 2025.
According to the UK-based firm, its assumption is based on the cedi appreciating by 16% between late April 2025 and the middle of May 2025. This is on the back of higher gold prices.
“The cedi has appreciated by 16% between late April and the middle of May (time of writing) on the back of higher gold prices, resulting in our Country Risk team revising down their end-2025 forecast for the Ghanaian cedi to GH¢13.0/US dollar, from our previous projection of GH¢15.5/US dollar. We now forecast that the currency will strengthen by 12.9% over 2025, from GH¢14.7/US dollar at the end of 2024”.
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