The Ghana cedi would continue to hold firmly against the US dollar and the other major foreign currencies in the near term.

This is supported by a sustained build-up in reserves and improving liquidity conditions, which are expected to continue supporting supply-side intervention.

Ghana’s foreign exchange reserves, excluding encumbered assets, increased by 63% month-on-month in April 2025, reaching US$7.92 billion, equivalent to 3.7 months of import cover. This was up from the US$7.26 billion (3.3 months of import cover) in March 2025.

This significant uptick was underpinned by stronger inflows from gold and cocoa exports, as well as improved remittance receipts.

Databank Research said, “We believe the improved reserve position provided the necessary buffers for targeted supply-side interventions, enhancing FX [foreign exchange] market liquidity and helping to anchor the cedi, which has appreciated by 26.73% Year-To-Date”.

“Additionally, the country’s business confidence index increased from 99.7 points in February 2025 to 102.2 points in April 2025. This signals a possible decline in safe haven demand, which we deem as a positive impact on the GHS [Ghana cedi}”, it added.

Last week, the Ghana cedi remained on the front foot against the major currencies. This was continuously improving forex liquidity and subdued demand pressures continued to support the local unit, helping to sustain the appreciation trend in recent weeks.

At the close of trading, the local unit gained 8.13% week-on-week versus the US dollar, 7.19% against the pound and 6.41% to the euro.

It quoted at a mid-rate of GH¢12.30 to one American greenback on the retail market.

Meanwhile, the cedi began this week strongly against all the major foreign currencies. It is presently trading at GH¢11.80 to one American greenback.

Its YTD is estimated at 38%.