Ghana Cedi’s recent rally eases as market momentum slows across interbank and retail sectors

The Ghana cedi’s recent appreciation has begun to level off over the past two weeks, as momentum across both interbank and retail foreign exchange markets moderated.

According to market data, the cedi closed at GH¢10.92 to the US dollar on the interbank market, representing a marginal depreciation of 0.64% from GH¢10.85 in the previous trading session. The British pound also recorded a slight decline of 0.37%, ending the week at GH¢14.37 compared to GH¢14.42 earlier, while the euro appreciated modestly by 0.22% to GH¢12.64 from GH¢12.61.

In the retail market, however, the local currency maintained its relative strength, with the US dollar/cedi pair closing at GH¢11.95, improving by 2.51% from GH¢12.25. The pound/cedi and euro/cedi pairs also strengthened to GH¢15.45 (up 5.18% from GH¢16.35) and GH¢13.65 (up 4.40% from GH¢14.25), respectively.

Analysts attribute the slowdown in cedi appreciation to reduced market activity and a rebalancing of rates across trading platforms.

“As broadly expected, the strong appreciation of the cedi moderated as sell-offs eased and buyers were drawn to discounted opportunities,” Databank Research noted in its market commentary.

The report further explained that the cedi’s resilience in the retail market could reflect rate adjustments by retailers in response to weak demand and the narrowing gap between interbank and retail prices.

“We believe the cedi’s gain in the retail market most likely reflects retailers recalibrating rates from elevated levels amid relatively weak demand, as participants favoured interbank rates,” the report added.

Looking ahead, Databank forecasts modest pressure on the cedi in the short term, driven by tightening foreign exchange supply ahead of the anticipated US$385 million IMF disbursement in December 2025.

“Despite well-anchored expectations from stronger FDIs and the recent S&P credit upgrade, a measured reduction in Bank of Ghana interventions—aimed at enhancing export competitiveness and protecting local producers—may temper further cedi gains in the near term,” it cautioned.

As of this week, the cedi is trading at GH¢11.95 on the retail market and GH¢10.92 on the interbank market, maintaining relative stability amid cautious optimism in the foreign exchange landscape.