The Ghana cedi started this week strongly with a marginal gain against the US dollar in the retail market.

It sold at GH¢10.98 in the retail market and GH¢10.25 in the interbank market.

So far this year, the cedi has gained nearly 50% in value against the American greenback.

Last week, the local currency continued to make headway, supported by steady foreign inflows and soft demand for hard currency.

The cedi gained 6.52% week-on-week versus the US dollar in the interbank market, maintaining its position as the top performer among a basket of 15 sub-Saharan African currencies.

On the retail market, it appreciated by 12.3% versus the dollar, 9.6% against the pound and 11.5% against the euro.

However, a Reuters report indicated that offshore investors are gradually returning with forex demand as they seek to repatriate profits from their cedi investments.

Databank Research said “We believe that a steady demand trend may put some modest pressure on the GHS [cedi] in the near term.”

However, it expects ample liquidity in the market this week and the Bank of Ghana’s targeted support to help keep the cedi afloat.

Fitch Solutions Revises End-Year Cedi Rate

Fitch Solutions revised its end-of-year forecast of cedi-to-dollar at GH¢13.0, from its previous projection of GH¢15.5 to one American greenback.

It is also forecasting a 12.9% appreciation against the US dollar in 2025.

According to the UK-based firm, its assumption is based on the cedi appreciating by 16% between late April 2025 and the middle of May 2025. This is on the back of higher gold prices.

“The cedi has appreciated by 16% between late April and the middle of May (time of writing) on the back of higher gold prices, resulting in our Country Risk team revising down their end-2025 forecast for the Ghanaian cedi to GH¢13.0/US dollar, from our previous projection of GH¢15.5/US dollar. We now forecast that the currency will strengthen by 12.9% over 2025, from GH¢14.7/US dollar at the end of 2024”.