Cedi dip slightly against major currencies despite support from BoG

The Ghana cedi recorded marginal losses against major international currencies over the past two weeks, although it remained relatively stable on the retail foreign exchange market, supported by continued interventions by the Bank of Ghana.

Latest market data indicate that the cedi depreciated by 0.47% against the US dollar on the interbank market, closing the period at a mid-rate of GH¢11.69 to the dollar. It also weakened by 1.36% against the British pound to trade at GH¢15.74, while it lost 1.58% against the euro, which closed at GH¢13.46.

Trading on the retail market was comparatively subdued. The cedi slipped by just 0.21% against the US dollar, selling at about GH¢12.13, while rates against the pound and euro remained largely stable at GH¢16.05 and GH¢13.70, respectively.

Despite its relative stability in recent weeks, the cedi recorded a 2.91% depreciation against the dollar in July 2026, reversing the 3.35% appreciation recorded in June. The decline occurred despite the Bank of Ghana injecting an estimated US$1 billion into the foreign exchange market during July to boost liquidity. This was slightly below the US$1.2 billion intervention recorded in June.

According to Databank Research, the cedi’s recent performance is broadly consistent with its earlier projection that the dollar would trade within a narrow range of GH¢11.60 and GH¢11.70 during the review period.

Looking ahead, the investment firm expects the Bank of Ghana’s planned US$1 billion foreign exchange intervention for August, together with the recent US$371 million disbursement under the IMF’s Extended Credit Facility, to help strengthen market liquidity and support stability.

However, Databank cautioned that sustained demand for foreign exchange from businesses, particularly for energy-related imports, could continue to put pressure on the cedi. The firm expects these underlying pressures to keep the local currency on a mild weakening trend, although significant volatility is not anticipated.

Databank projects the US dollar to trade within a range of GH¢11.40 to GH¢11.85 in the coming weeks. The cedi began the new trading week at approximately GH¢12.15 to the US dollar.

Despite the recent depreciation, the local currency has maintained a 0.41% year-to-date appreciation against the US dollar.