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The cedi has staged a notable recovery over the past two weeks, trimming its year-to-date losses from nearly 11 percent to about 6 percent, as increased foreign exchange interventions by the Bank of Ghana helped stabilise the market.
The rebound was largely driven by stronger foreign exchange support from the central bank, which eased pressure on the local currency and reduced demand for the US dollar.
According to a report by Databank Research, the cedi delivered impressive gains against major international currencies in the interbank market during the review period.
The local currency appreciated by 5.66 percent against the US dollar, 6.76 percent against the British pound, and 6.24 percent against the euro. It closed the period at GH¢11.22 to the dollar, GH¢14.83 to the pound, and GH¢12.86 to the euro.
The cedi also strengthened in the retail foreign exchange market. It gained 2.07 percent against the dollar to trade at GH¢12.05, while appreciating by 2.19 percent against the pound and 2.25 percent against the euro to close at GH¢16.00 and GH¢13.90 respectively.
Databank Research noted that the currency’s performance exceeded expectations. Earlier projections had suggested that the Bank of Ghana would step up its foreign exchange interventions later in June.
Instead, the central bank moved sooner than anticipated, injecting substantial volumes of discounted foreign exchange into the market. The move boosted liquidity and helped the cedi record an average appreciation of about 6 percent over the two-week period.
The interventions also strengthened market confidence, reducing speculative activity in the foreign exchange market and improving sentiment among traders and investors.
Analysts and policymakers remain optimistic that the cedi’s recovery could continue in the weeks ahead, particularly as a significant portion of the Bank of Ghana’s estimated US$1.2 billion foreign exchange allocation for June 2026 has yet to be deployed.
The recent rally underscores the critical role of the Bank of Ghana in maintaining stability in the foreign exchange market and supporting the performance of the local currency.
