Cedi falls against the dollar by 11% as demand for forex grows ahead of festivities

SearchNewsBusinessAround AfricaShowbizWorldSportsRadioSearchNewsBusinessAround AfricaShowbizWorldSportsRadioCedi falls against the dollar by 11% as demand for forex grows ahead of festivities13th October 2026 4:28:58 PM

Twitter | Facebook | WhatsApp | Copy LinkAs the Christmas festivities approach, demand for foreign exchange has increased, putting pressure on Ghana’s reserves.

Consequently, the cedi has come under renewed pressure amid a gap between forex demand and supply. According to reports, the cedi has lost more than 11% of its value against the US dollar since the beginning of the year, as seasonal import demand and higher energy costs continue to weigh on the local currency.

On the interbank market, the cedi lost 1.42% against the US dollar, which traded at GH¢11.78. It also weakened by 1.29% against the British pound, closing at GH¢15.56.

However, the cedi gained 0.35% against the euro, which traded at GH¢13.14.

At forex bureaus, the cedi lost 1.45% against the dollar, which traded at an average of GH¢12.10. However, it gained 0.47% against the pound and 0.55% against the euro.

The cedi closed at GH¢15.55 to the pound and GH¢13.30 to the euro.

Gold sales through GoldBod and dollar sales by the Bank of Ghana could help support the cedi in the short term. These measures could strengthen the local currency temporarily and keep it relatively stable for a few days.

However, a lasting recovery will depend on whether Ghana receives enough foreign exchange to meet demand, particularly as businesses increase imports ahead of the Christmas season, without undermining the Bank of Ghana’s efforts to build its reserves.

DataBank Research expects the dollar to trade between GH¢11.60 and GH¢12.10 in the near term. The firm warned that the cedi could weaken further if demand for dollars to pay for imports and energy costs increases faster than the available supply of foreign exchange.

“Looking ahead, we expect GoldBod’s spot-gold sales and BoG interventions to provide near-term support, potentially triggering a sharp appreciation surprise and a brief 4 to 5-day period of stability,” DataBank Research said.

The research firm, however, cautioned that the cedi’s recovery would depend on whether foreign exchange inflows were strong enough to meet import demand.

“Sustained appreciation will depend on whether spot inflows can soften seasonal import demand without compromising the BoG’s reserve-accumulation target,” it added.

In August, the cedi gained about 4.87% against the dollar. However, it depreciated in early September, bringing its total loss against the dollar for the year to 8.77% at the time.

On the interbank market, the cedi weakened by 1.85% against the US dollar to GH¢11.46. It also depreciated by 1.75% against the pound and 2.04% against the euro, trading at GH¢15.50 and GH¢13.31, respectively.

Movements at retail forex bureaus were relatively subdued, with the dollar trading at GH¢11.90, representing a 0.42% depreciation of the cedi. The pound traded at GH¢15.93, reflecting a 0.16% appreciation of the cedi, while the euro remained unchanged at GH¢13.68.

These figures were contained in DataBank Research’s fortnightly cedi performance report, published in mid-September 2026.

The research firm attributed the cedi’s weakness to what it described as largely front-loaded depreciation, with roughly 70% of the fortnight’s depreciation occurring in the first week.

“Pressure stemmed from strong corporate and offshore FX demand, particularly for import payments, coupon repatriation and an early year-end inventory build-up, against relatively tight interbank supply. At the same time, the BoG reportedly lowered its US$500 million September 2026 intervention target, further reducing the near-term liquidity cushion,” it added.

Going forward, the research firm expects the cedi to retain a mild depreciation bias in the coming weeks. However, GoldBod’s planned US$700 million forex supply to commercial banks, together with continued BoG support and reserve accumulation, should improve market liquidity and help contain the risk of a disorderly adjustment.