Credit: Kekeli K. Blamey
The Ghana cedi gained significant ground against major currencies last week, appreciating by 1.44% against the US dollar.
The local currency strengthened to GH¢15.58/$ on the retail market, with one dollar selling for GH¢15.75 as of today.
According to data from the Bank of Ghana, the cedi also appreciated by 2.86% against the pound and 3.70% against the euro on the retail market. This upward trend is attributed to thin forex liquidity, as yuletide demand appears to have waned.
The Bank of Ghana’s foreign exchange auction calendar for the first quarter of 2025 confirms a consistent allocation of US$20 million per auction for the initial six auctions. Analysts believe that this, combined with easing demand and ongoing seasonal liquidity, could lead to the cedi remaining well-supported in the coming days.
The local unit is expected to strengthen further this week. Despite losing about 21.58% in value to the US dollar so far this year, the cedi’s recent gains suggest a positive outlook for the currency.
The Bank of Ghana’s daily forward sales also indicate slowing demand pressures, with the central bank selling US$20 million to Bulk Oil Distributors at a forward rate of GH¢14.7690/$.
This rate is slightly lower than the previous auction rate of GH¢14.8133/$.
