The Ghana cedi has recorded a modest recovery against major international currencies, supported by external tailwinds and positive market sentiment.
Over the past fortnight, the cedi faced mild demand-driven pressures in the first week but regained ground in the latter half as broad-based “sell America” sentiment bolstered external support.
In the interbank market, the cedi appreciated by 0.09% against the US dollar, 0.86% against the pound sterling, and 1.16% against the euro, closing at mid-rates of GH¢10.97/US dollar, GH¢14.81/pound, and GH¢12.93/euro.
The gains also reflected in the retail segment, where the cedi strengthened by 0.6% against the US dollar, 1.29% against the pound sterling, and 1.11% against the euro, settling at mid-rates of GH¢11.63/US dollar, GH¢15.55/pound, and GH¢13.50/euro.
Databank Research noted that the cedi’s recent appreciation aligns with gains across other major Sub-Saharan African currencies, driven by sustained US dollar weakness. Analysts expect these tailwinds to support further cedi strength as global expectations of continued dollar softness temper demand for the greenback, amid heightened geopolitical risks.
“Supported by targeted forex intervention from the Central Bank through a US$1.0 billion facility gradually deployed to meet market demand, we anticipate the cedi’s gains extending to an interbank mid-rate range of GH¢10.85–10.95/US dollar over the next fortnight. Retail rates should align around GH¢11.55–11.60/US dollar, with scope for tighter spreads if inflows accelerate,” Databank Research added.
The cedi began the week trading at GH¢11.70 in the retail market, recording a year-to-date gain of 4.95% against the US dollar.
BY TIMES REPORTER
Join our WhatsApp Channel now! https://whatsapp.com/channel/0029VbAjG7g3gvWajUAEX12Q
Follow the latest videos and updates on the official YouTube channel of Ghanaian Times.
