Cedi Rebounds Temporarily As Demand Pressures Mount
The Ghana cedi has seen a significant rebound across both interbank and retail markets over the past fortnight, primarily due to subdued demand for foreign exchange.
In the interbank segment, the cedi appreciated by 3.74% against the US dollar, closing at a mid-rate of GH¢10.70. It also advanced by 4.27% and 4.81% against the pound and euro, respectively, to settle at GH¢14.38 and GH¢12.47.
In the retail market, the cedi gained 1.65% against the dollar, 2.49% against the pound, and 2.85% against the euro, closing at GH¢12.15 to a dollar, GH¢16.05 to one pound, and GH¢14.05 to a euro.
Despite this recovery, near-term pressure on the cedi is anticipated due to front-loaded import demand and the unwinding of year-end foreign exchange buffers, which will strain forex supply.
However, analysts predict that any dips in the cedi’s value will be modest, as market expectations are tempered by the gradual disbursement of the US$1.0 billion earmarked for January 2026 under the Foreign Exchange Intermediation Programme.
According to Databank Research, recent FED-Trump tensions over Powell’s investigation may lead to a softening of the US dollar’s performance in the near term, but this is expected to have a weak multiplier effect as local demand pressures resurface.
The cedi began this week trading at GH¢12.25 against one US dollar in the retail market, while the Bank of Ghana quoted one dollar as GH¢10.71.
Image Source: MYJOYONLINE
