Cedi Depreciation Slows; Dollar Trades at GH¢13.70 in Retail Market
The Ghana cedi’s recent slide against major currencies has shown signs of slowing, with both the interbank and retail markets recording smaller losses over the past two weeks.
On the interbank side, the local currency closed at GH¢12.40 to the US dollar, compared to GH¢12.15 previously. This represented a 2.02% depreciation, a sharp improvement from the 6.17% dip recorded in the prior two weeks.
In the retail market, the cedi held fairly steady, moving between GH¢13.40 and GH¢13.50 to the dollar, registering a marginal 0.74% fall—far lower than the 6.72% decline seen earlier. The pound and euro also saw modest changes, ending at GH¢18.05 and GH¢15.70, respectively.
Databank Research observed that the easing of the depreciation trend aligns with expectations of near-term stability, driven by stronger foreign exchange inflows and calmer market sentiment. “We remain cautiously optimistic, with seasonal inflows from commodity exports expected to support the cedi,” the firm noted.
Still, corporate demand for dollars, especially from the services sector ahead of the festive season, could add pressure. Even so, analysts point to continued support from the Bank of Ghana’s reserves and positive expectations from the IMF’s ongoing programme review as factors likely to keep the currency relatively stable.
International developments could also play a role. The current budget gridlock in the United States is weakening the dollar, which may provide further relief for the cedi.
As of the beginning of this week, the retail rate for the dollar stood at GH¢13.70, while the cedi has posted a year-to-date gain of about 15% against the US currency
