The Ghanaian cedi may continue its upward trajectory into next week, as fresh data available to The High Street Journal shows that demand for US dollars on the interbank market remains relatively low.
This week, the Bank of Ghana (BoG) offered a total of $270 million in foreign exchange to currency dealers. However, only $162.1 million—approximately 60% of the total—was taken up, leaving 40% of the Central Bank’s supply untouched. In a market typically characterized by strong demand, this signals a notable shift in sentiment.
Tuesday, May 7, recorded the weakest demand of the week, with nearly 70% of the dollar supply going unsold. By Thursday, demand had picked up slightly, with about 82% of the forex offered taken up. Yet on Friday, May 9, demand slumped again, as only 51% of the $49 million made available by the BoG was purchased.
According to market watchers, the generally weak demand, particularly the drop on Friday suggests that the cedi could continue to appreciate in the coming week.
In response to the trend, the Ghana Union of Traders Association (GUTA) is advising its members to sell off their dollar holdings to avoid further losses. The leadership argues that the value of the dollar continues to fall, and traders holding on risk eroding their capital.
The cedi’s appreciation is being attributed to a combination of global and domestic factors. These include a weakening US dollar, Ghana’s strengthened gold reserves, improved fiscal discipline, and growing investor confidence in the economy. S&P Global Ratings has just upgraded Ghana’s long-term foreign-currency credit rating to CCC+ from Selective Default, citing strong progress in economic stabilization and reform implementation under Finance Minister.
Meanwhile the Finance Minister Dr. Ato Forson has reiterated the government’s commitment to sustaining the cedi’s performance. “The recent appreciation of the cedi and the stability being witnessed is not a temporary or knee-jerk reaction. It is the result of deliberate, well-thought-out planning and prudent economic management,” he said.
Despite earlier forecasts suggesting the cedi might reach GH₵12, it closed the week at GH₵13.18 to the US dollar—still marking a significant gain from recent months.
