The Ghanaian cedi has strengthened against the US dollar and other major currencies, trading at GH¢12.8964 to the dollar in the latest Bank of Ghana exchange rate bulletin.
This marks a notable recovery from recent pressures, signaling improved market confidence in the local currency.
At Tuesday’s official rates, the pound sterling traded at GH¢17.0401 while the euro exchanged at GH¢14.3411. The narrowing spread between buying and selling rates suggests reduced speculative activity in the foreign exchange market, according to financial analysts.
The cedi’s rebound follows several months of volatility, with its stabilization attributed to multiple factors. The Bank of Ghana’s monetary policy tightening, combined with recent inflows from international financial institutions and cocoa sector financing, has bolstered foreign exchange reserves. Market observers also credit the central bank’s proactive interventions in the forex market for helping to steady the currency.
“The current trend reflects both improved liquidity conditions and growing confidence in Ghana’s economic recovery path,” noted a financial analyst in Accra. “The more stable exchange rate should help moderate import costs and support the disinflation process.”
The currency’s performance comes as Ghana prepares for its mid-year budget review, with policymakers balancing fiscal consolidation targets against growth objectives. The Bank of Ghana has reaffirmed its commitment to maintaining exchange rate stability through continued market monitoring and appropriate policy measures.
While the cedi’s appreciation provides temporary relief, economists caution that sustained stability will depend on maintaining fiscal discipline, boosting export earnings, and managing external debt obligations. The coming months will test whether the current positive trend reflects a fundamental strengthening or temporary market adjustments.
