The Ghana cedi staged a strong recovery over the past two weeks, with year-to-date losses narrowing sharply to about 6% from nearly 11%.
The local currency’s resurgence was driven by robust FX supply from the Bank of Ghana, which helped ease market pressures and dampen speculative demand that had weighed on the currency in recent months.
According to Databank Research, in the interbank market, the cedi appreciated by 5.66% against the US dollar, 6.76% against the British pound and 6.24% against the euro during the review period. The currency closed at midrates of GHS11.22 per US dollar, GHS14.83 per pound and GHS12.86 per euro.
The gains were also reflected in the retail market, where the cedi strengthened by 2.07% against the dollar to GHS12.05 per US dollar. It also advanced by 2.19% against the pound and 2.25% against the euro, ending the period at GHS16.00 per pound and GHS13.90 per euro respectively.
The currency’s performance exceeded expectations, largely due to stronger-than-anticipated interventions by the Bank of Ghana. Earlier forecasts had projected relatively modest FX injections at the start of June, with larger interventions expected later in the month.
However, sizeable discounted foreign exchange liquidity injections by the central bank altered that outlook, providing substantial support to the market and triggering an average appreciation of about 6% over the two-week period.
The interventions have also helped restore confidence among market participants by reducing speculative demand for foreign currency. Historical episodes of FX intermediation in the range of US$1.2 billion to US$1.5 billion have typically improved market stability and supported exchange rate performance.
Market watchers believe the cedi could strengthen further in the weeks ahead. With a significant portion of the Bank of Ghana’s June 2026 FX allocation of approximately US$1.2 billion yet to be disbursed, additional foreign exchange supply is expected to continue supporting the local currency.
Analysts project that, provided FX liquidity inflows remain strong, the cedi could appreciate toward the GHS10.90 per US dollar mark in the near term.
The latest gains underscore the growing influence of central bank interventions in stabilising Ghana’s foreign exchange market, with investors closely watching the pace of future liquidity injections and broader market conditions.