The Ghanaian cedi continued its recent rally against the US dollar on Wednesday, May 21, with the greenback falling to GH₵11.95 on the interbank market just before 10:00 am. This marks a significant drop from earlier levels and reflects a sustained decline in demand for the dollar.
The session began with the dollar sliding from GH₵12.15 to GH₵12.12 in early trading, before dipping further to GH₵11.95 as market sentiment remained bearish toward the US currency. The decline coincides with the opening day of the second Monetary Policy Committee (MPC) meeting for Governor Johnson Asiama, a closely watched event that could shape market direction in the coming days.
Currency trader Kodzo Dziwornu Letsa told The High Street Journal that market sentiment remains soft, suggesting the dollar could slide even further before the week ends. “We could see the cedi gain more ground if current trends hold,” he noted.
Speculation is mounting that the dollar could fall as low as GH₵10 before stabilizing. The Bank of Ghana, however, has declined to comment on the projection, indicating only that it continues to monitor developments in the market.
The cedi’s recent strength — one of its most sustained in recent memory, has been underpinned by a combination of domestic and external factors. On the external front, elevated global prices for gold and cocoa have boosted Ghana’s export earnings, while the Bank of Ghana’s gold reserves have increased in value. Domestically, fiscal discipline has improved with tighter government spending, and investor confidence appears to be strengthening.
Additionally, the weakening of the US dollar globally has played a role, as the cedi gains from the relative decline in the dollar’s value against major international currencies.
The strengthening cedi is already delivering some relief to consumers and businesses. Fuel prices have seen successive reductions, prompting transport unions to announce a 15% cut in fares effective Saturday, May 24. Import duties have also eased, although the prices of many goods remain high. Some retailers, including shops dealing in home appliances, have begun slashing prices, citing the cedi’s appreciation as a key factor.
As the Bank of Ghana’s MPC continues its deliberations, all eyes will be on the policy direction and its potential impact on the currency market. A decision that reinforces investor confidence could further anchor the cedi’s performance in the weeks ahead.
