The Ghana cedi experienced another period of depreciation in the interbank market, losing 0.47% against the US dollar, 1.36% against the pound sterling, and 1.58% against the euro in the last two weeks. The cedi closed at mid-rates of GH¢11.69 to a US dollar, GH¢15.74 to the pound, and GH¢13.46 to the euro.
Cedi's Interbank Market Performance
The Ghana cedi depreciated in the interbank market, closing at GH¢11.69 to a US dollar, GH¢15.74 to the pound, and GH¢13.46 to the euro. This is a significant drop from its previous rates. The cedi's performance in the interbank market is closely watched by economists and financial analysts.
The retail market activity was subdued, with the cedi easing marginally by 0.21% against the US dollar to GH¢12.13 to one American greenback. The pound and euro traded largely unchanged at GH¢16.05 to the pound and GH¢13.70 to the euro.
Bank of Ghana's Intervention
The Bank of Ghana has been providing foreign exchange support to the economy, with an estimated US$1.0 billion in forex support in July 2026. Despite this, the cedi fell 2.91% against the US dollar in July 2026, reversing June's 3.35% appreciation. This suggests that the cedi's performance is influenced by factors beyond the Bank of Ghana's control.
Databank Research noted that the dollar remained at range-bound, trading between GH¢11.60 and GH¢11.70 over the review period. This is broadly in line with its earlier projection.
Outlook for the Cedi
According to Databank Research, the Bank of Ghana's US$1.0 billion August FX intermediation, alongside the recent US$371 million IMF ECF disbursement, should provide a useful liquidity buffer and anchor market expectations. However, the research firm still expects underlying pressure from commercial demand and energy-related imports to keep the cedi on a mild weakening path.
Databank Research foresees volatility staying contained, with upside in US dollar/Ghana cedi likely capped near GH¢11.85 and downside supported around GH¢11.40/US dollar.
Year-to-Date Performance
The cedi began the week going for GH¢12.15 against one US dollar. Its year-to-date gain stood at 0.41%.
The cedi's performance is a concern for the economy, particularly for businesses and individuals who rely on imports. The ongoing depreciation of the cedi is likely to increase the cost of living and doing business in Ghana. As the Bank of Ghana continues to provide foreign exchange support, it remains to be seen whether the cedi's performance will stabilize or continue to weaken.
Source: Joy Online
