The Ghana cedi has demonstrated continued strength in the retail market against the US dollar, trading at an average of GH₵15.75 on February 17, 2025, after closing at GH₵15.95 on February 14, 2025. Despite a minor year-to-date loss of 0.63%, experts predict that the cedi is likely to stay stable in the short term. They forecast the local currency will trade within the range of GH₵15.50 to GH₵15.70 by the end of the week, driven by a decrease in corporate demand. While the cedi remains relatively strong, caution remains for the upcoming months due to a potential decrease in foreign exchange support, repatriation issues, and growing demand, all of which could affect the currency's stability.
While the cedi saw modest depreciation in the interbank market last week, its retail market performance remained unaffected. The main factor behind the stability in retail was a low demand for foreign currency, which helped maintain equilibrium. Conversely, volatility in the interbank market was a result of a limited supply of foreign exchange, which created fluctuations in the cedi's value. By the end of last week, the cedi had appreciated slightly by 0.48%, settling at GH₵15.95 to the US dollar. In contrast, the currency's exchange rate against the British pound stayed steady at GH₵19.50, while it weakened marginally by 0.31% against the euro, finishing at GH₵16.25.
Although the cedi's performance has been relatively stable in the retail market, experts remain cautious about the future outlook due to external factors that could pressure the local currency. The stability observed in the retail sector is mainly a result of reduced demand for foreign currencies, and analysts are keeping a close watch on developments related to foreign exchange reserves and domestic demand. In light of rising pressures on the cedi, concerns over its long-term strength continue, as the country faces challenges in sustaining foreign currency support and managing increasing demand for the US dollar and other foreign currencies. The coming months could reveal whether the cedi can continue its strong performance or if new challenges will disrupt its current stability.
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