Cedi regains grounds against dollar; one-dollar equals GH¢16.10

The Ghanaian cedi appreciated by 1.38% against the US dollar last week, narrowing its year-to-date depreciation to 2.05%. It also gained 0.61% against the euro, while depreciating 0.26% against the pound.

Analysts attributed the cedi’s improved performance to reduced speculative demand following the Bank of Ghana's US$170 million 7-day forward auction.

Despite intermittent pressures in 2024 due to energy-related forex demand, bond restructuring delays, COCOBOD financing uncertainties, and election-related jitters, the cedi regained some value in the last quarter.

The Real Effective Exchange Rate (REER) index ended the year at 135.3, down from October’s peak of 156.2.

Databank Research warns that rising import costs, strong dollar performance, and increased forex demand in manufacturing and energy could pressure the cedi in the weeks ahead.