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The Ghana cedi recorded a modest appreciation against the US dollar across both the interbank and retail forex markets over the past two weeks.

This was supported by improved conditions of foreign exchange liquidity.

On the interbank market, the cedi strengthened by 1.86% against the US dollar, 3.00% against the pound and 3.45% against the euro. It closed at mid-rates of GH¢10.77 per dollar, GH¢14.38 against the pound and GH¢12.50 to the euro.

The gains were also reflected in the retail segment, where the currency appreciated by 0.65% against the American greenback, 2.64% against the pound and 0.37% against the euro settling at GH¢11.55 to a dollar, GH¢15.15 to a pound and GH¢13.45 against the euro.

Databank believes the recent appreciation was partly driven by stronger export receipts from gold and crude oil.

“The elevated commodity prices amid escalating Middle East tensions boosted FX [foreign exchange] inflows and improved liquidity in the domestic market”, it said.

However, it pointed out that the broader global backdrop remains fragile, with heightened geopolitical risks strengthening the US dollar as a safe-haven asset and sustaining global demand for dollar liquidity.

“Looking ahead, stronger commodity export receipts alongside the Central Bank’s targeted US$1bn FX intervention facility for March [2026] should provide near-term support to the cedi. Nonetheless, we anticipate that rising importer-driven FX demand, higher import costs and persistent global risk aversion will reintroduce depreciation pressures on the currency”, it added.

Meanwhile, the cedi began trading at GH¢11.40 to the American greenback at the forex bureaus.

Its year-to-date gain stood at 6.33%.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.