Cedi depreciation slows; $1 now GH¢13.70 at forex bureaus

The cedi’s recent decline slowed noticeably over the past two weeks, with both the interbank and retail markets showing only modest losses compared to earlier sharp drops.

On the interbank market, the dollar-cedi rate closed at GH¢12.40 to $1, down 2.02% from GH¢12.15 two weeks earlier.

This is a significant improvement from the 6.17% slide recorded in the previous review period.

In the retail market, the cedi traded within a narrow band of GH¢13.40–GH¢13.50 per dollar, weakening by just 0.74% compared to a 6.72% fall earlier.

Against other major currencies, the pound closed at GH¢18.05 (-2.49%) while the euro settled at GH¢15.70 (-1.59%).

Databank Research attributed the relative stability to stronger foreign exchange inflows and calmer market sentiment.

“The slowdown in the cedi’s depreciation confirms our expectations of stability,” it said, noting that seasonal FX inflows from commodity exports should further support the currency in the near term.

However, it cautioned that rising corporate demand, especially from the services sector ahead of the festive season, could put pressure on the cedi.

Even so, it expects the Bank of Ghana’s consistent market interventions, supported by healthy reserves and optimism around the IMF’s fifth programme review, to keep the outlook broadly stable.

The ongoing U.S. budget stalemate, which has weakened the dollar globally, could also provide added relief.

As of the start of this week, the cedi was trading at GH¢13.70 per dollar on the retail market, reflecting a year-to-date gain of 15% against the greenback.