The Ghana cedi has staged a notable rebound over the past fortnight, with year-to-date depreciation easing sharply to about 6% from nearly 11%.
The local unit’s recovery was spurred by solid foreign exchange inflows from the Bank of Ghana, which helped ease market strain and curb speculative demand that had weighed on the currency in recent months.
Databank Research reported that, on the interbank market, the cedi gained 5.66% against the US dollar, 6.76% against the British pound, and 6.24% against the euro during the review period. It closed at midrates of GHS11.22 per dollar, GHS14.83 per pound, and GHS12.86 per euro.
The momentum was also visible in the retail market, where the cedi firmed by 2.07% against the dollar to GHS12.05. It advanced by 2.19% against the pound and 2.25% against the euro, ending at GHS16.00 per pound and GHS13.90 per euro respectively.
The currency’s performance surpassed expectations, largely due to stronger-than-anticipated interventions by the Bank of Ghana. Initial projections had suggested modest FX injections at the start of June, with heavier support expected later in the month.
However, sizeable discounted liquidity injections by the central bank shifted that outlook, providing substantial backing to the market and driving an average appreciation of about 6% over the two-week span.
The interventions have also bolstered confidence among traders by reducing speculative demand for foreign currency. Past episodes of FX support in the range of US$1.2 billion to US$1.5 billion have typically enhanced market stability and strengthened exchange rate outcomes.
Market analysts believe the cedi could gain further in the coming weeks. With a significant portion of the Bank of Ghana’s June 2026 FX allocation of roughly US$1.2 billion yet to be released, additional supply is expected to continue supporting the currency.
Experts forecast that, provided FX inflows remain robust, the cedi could appreciate toward the GHS10.90 per US dollar level in the near term.
The recent rally highlights the growing impact of central bank interventions in stabilising Ghana’s FX market, with investors closely monitoring the pace of future liquidity injections and broader market dynamics.
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