Ghana’s local currency, the cedi, has continued its strong rally against the US dollar, with the interbank market now quoting the exchange rate at GH¢13.89 to US$1. This marks a significant appreciation from recent weeks, when the cedi hovered around GH¢15.40 to GH¢15.90 per dollar.
Market analysts attribute the cedi’s renewed strength to a combination of reduced demand for foreign exchange, robust foreign reserves, and strategic interventions by the Bank of Ghana (BoG).
Last week, the central bank offered US$190 million to the market, yet dealers absorbed only US$84.80 million, a clear sign of declining demand pressure.
In addition, the BoG has reaffirmed its commitment to ensuring currency stability. Governor Dr. Johnson Asiama recently emphasized that the cedi’s current momentum will be maintained, assuring Ghanaians that the central bank is equipped to prevent excessive volatility.
“The market is showing positive sentiment, supported by stronger reserves and prudent fiscal measures,” said a currency trader based in Accra.
This development comes at a time when importers and business owners are breathing a sigh of relief, as a stronger cedi reduces the cost of imports and helps stabilize prices. However, some exporters may begin to feel the pinch as their earnings in dollars convert to fewer cedis.
Looking ahead, the outlook for the cedi remains cautiously optimistic. Analysts believe the currency could sustain its gains if current conditions persist and the BoG continues its targeted support.
For now, the cedi’s rise is a welcome boost to Ghana’s economic outlook, and a signal of growing confidence in the country’s financial management.
