Currency Update: Cedi
Hits GH¢10.80 per U.S. Dollar
The Ghanaian cedi traded at a buying rate of GH¢10.79 and a selling
rate of GH¢10.80 per dollar on the interbank market, as reported in the Bank of
Ghana’s latest update. This movement underscores renewed volatility and
heightened trading activity in Ghana’s FX market.
Forex Fluctuations: Interbank vs. Retail
Markets
While the interbank market reflected a slowdown in the
cedi’s recovery, the retail market reported marginal gains between GH¢11.40 and
GH¢11.90 per USD, driven by managed quoting and relative stability. Analysts
noted the cedi clocked a 1.06% retracement gain in retail trades despite
broader pressures.
Key Drivers of Depreciation
The depreciation on the interbank platform is attributed to:
-Renewed corporate demand for foreign currency.
-Thin foreign exchange supply across banking institutions.
-Market volatility as global financial dynamics shift.
Historical Context:
Cedi on a Recovery Trajectory
After enduring its lowest-ever valuation (≈GH¢16.4 per USD
in late 2024), the cedi has rebounded sharply, regaining strength to trade near
GH¢10–11 per dollar by mid-2025, making it one of the top-performing currencies
globally so far this year.
Why This Matters
Economic Planning: Businesses and government institutions
may face cost adjustments on imports and FX-denominated debt.
Investor Sentiment: Persistent FX pressure may signal risk
for foreign capital inflows.
Policy Action:The Bank of Ghana may need to intervene to
stabilize the cedi through monetary or forex market tools.
FAQs
Q1: Why did the cedi depreciate to GH¢10.80 per dollar?
A: The cedi weakened due to increased corporate demand and
insufficient foreign currency supply on the interbank market.
Q2: How does the interbank rate differ from the retail rate?
A: The interbank rate reflects wholesale trading among banks
(GH¢10.80/USD), while retail rates, offered to the public, were slightly
weaker, around GH¢11.40–11.90/USD.
Q3: Has the cedi improved compared to recent highs in 2024?
A: Yes. After reaching a low of approximately GH¢16.4/USD
late 2024, the cedi has recovered significantly to hover around GH¢10–11/USD in
2025.
Q4: What could happen next with the cedi?
A: Continued global uncertainty and local forex demand may
keep the cedi volatile. The Bank of Ghana may need to deploy intervention
strategies to maintain stability.