The Ghana cedi weakened modestly in the wholesale (interbank) market over the past two weeks, but remained broadly stable in the retail market.

In the interbank market, it depreciated by 1.39% against the US dollar, 2.03% against the pound sterling and 1.39% against the euro. It closed trading at mid-rates of GH¢11.55 against the US dollar, GH¢15.53 against the pound and GH¢13.21 to the euro.

In the retail market, the cedi remained unchanged to the dollar at an average of GH¢12.05, while it rose to GH¢15.95 from GH¢15.75, with the euro/Ghana cedi edging down slightly to GH¢13.65 from GH¢13.70.

Databank Research believes the modest interbank slippage largely stems from sustained pressures on derived demand outpacing a policy-anchored forex supply.

“While gross reserves appear robust, supported mainly by gold and traditional export inflows, the government’s relatively ambitious reserve agenda to build roughly 15 months of import cover by 2028 will require stronger reserve accumulation efforts. This, we believe, may temper the scale of spot market interventions”.

“We believe market participants are pricing in these potential supply constraints alongside rising fuel costs, keeping forward expectations elevated. Looking ahead, we expect the cedi to remain broadly stable within the GH¢11.40 to GH¢11.70/US dollar range, with modest nominal dips persisting until stronger interventions or a seasonal cooling of trade flows meaningfully eases market expectations of further weakness”, it added.

Meanwhile, the cedi began the week going for GH¢12.20 against the US dollar.

Its year-to-date appreciation, however, stood at 1.04%.