The Ghana cedi slipped amid seasonal heat over the last two weeks.
Over the past two weeks, the local currency experienced modest depreciation pressures against the major trading currencies, driven mainly by seasonal demand and cautious foreign exchange support from the central bank.
In the interbank market, the US dollar Ghana cedi pair closed the fortnight at a midrate of GH¢11.41, up from GH¢1.12. Against the pound and euro, the cedi depreciated by 4.62% and 3.87%, closing at GH¢15.26 and GH¢13.32, respectively.
In the retail market, the cedi dipped 0.41% to GH¢12.05, while shedding 0.94% and 1.08% of its value against the pound and euro, closing at GH¢15.90 and GH¢13.95, respectively.
Databank Research said this is broadly aligned with its expectations of seasonal demand pressures and moderated foreign exchange support, tempered further gains of the local currency.
“Despite the seasonal pressures, we note that volatility remained relatively contained, compared to historical overshoots, and we believe this can be attributed to robust FX [forex] supply and spot interventions. Looking ahead, we tip near-term stability of the US dollar/ Ghana cedi pair within the band of GH¢11.67 to GH¢12.15 in the retail market”.
“We note that low OMO yields could have incentivised banks to expand long FX [forex] positions, but the BoG’s revised single-currency Net Open Position limits (0% to -10%) constrain such positions, effectively curbing potential pressure on the local currency. In addition, we foresee the likely IMF disbursement further tempering bearish expectations, reinforcing our near-term outlooks”, it added.
Meanwhile, the cedi began the week going for GH¢12.20 in the retail market. It’s year-to-date gain stands at 27.78% since January 1, 2025.
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