The Ghanaian currency, the cedi, has continued its impressive rally against the US dollar, with the interbank market now quoting the exchange rate at GH¢13.89 to US$1. This significant appreciation from recent weeks, when the cedi hovered around GH¢15.40 to GH¢15.90 per dollar, is a welcome boost to the country’s economic outlook.
Market analysts attribute the cedi’s renewed strength to a combination of reduced demand for foreign exchange, robust foreign reserves, and strategic interventions by the Bank of Ghana (BoG).
Last week, the central bank offered US$190 million to the market, yet dealers absorbed only US$84.80 million, a clear sign of declining demand pressure.
The BoG has reaffirmed its commitment to ensuring currency stability, with Governor Dr. Johnson Asiama emphasizing that the cedi’s current momentum will be maintained.
“The market is showing positive sentiment, supported by stronger reserves and prudent fiscal measures,” said a currency trader based in Accra.
This development has brought relief to importers and business owners, as a stronger cedi reduces the cost of imports and helps stabilize prices. However, some exporters may begin to feel the pinch as their earnings in dollars convert to fewer cedis.
Looking ahead, the outlook for the cedi remains cautiously optimistic, with analysts believing the currency could sustain its gains if current conditions persist and the BoG continues its targeted support. Dr. Asiama assured, the central bank is equipped to prevent excessive volatility, instilling confidence in the country’s financial management.
The cedi’s rise is a signal of growing confidence in Ghana’s economic prospects, and its stability is expected to have a positive impact on the country’s financial landscape.
By Lawrence Odoom
