The Ghanaian cedi is showing signs of resilience this week as it continues to hold steady against the US dollar, offering a much-needed breath of relief for the economy. After a shaky start to the year, the local currency has managed to maintain a level of stability, largely due to the proactive intervention of the Bank of Ghana (BoG) in the forex market. This development comes amid growing optimism following Ghana's latest agreement with the International Monetary Fund.
As of April 22, 2025, the cedi was trading at GH¢15.98 to one US dollar, marking a slight gain from its previous rate of GH¢16.00 the day before. This marginal improvement reflects renewed market confidence and a gradual shift in investor sentiment, especially after the BoG’s significant injection of US$254.60 million into the market last week. That move successfully matched demand for the greenback, preventing excessive volatility and reinforcing the cedi’s position on the retail market.
Despite the relative calm against the dollar, the cedi recorded some losses against other major currencies. It slipped by 2.17 percent against the British pound and 2.54 percent versus the euro on a week-on-week basis. Nonetheless, analysts maintain a positive outlook for the local currency, crediting the BoG’s consistent measures and recent progress in Ghana’s economic negotiations.
Adding to the positive sentiment is Ghana’s recent Staff Level Agreement with the International Monetary Fund, under the US$3 billion Extended Credit Facility programme. This marks the fourth review of the agreement, which continues to serve as a critical pillar in Ghana’s economic recovery efforts. The deal has given a strong signal to markets that Ghana remains committed to fiscal discipline and reform, further boosting the cedi’s image among traders and investors.
The Bank of Ghana has been keen to ensure exchange rate stability, particularly in light of external pressures and high import dependency. The central bank’s approach, blending direct market intervention with broader monetary policy tools, has been instrumental in keeping the cedi relatively grounded. While currency depreciation remains a concern, especially with ongoing global economic uncertainties, Ghana’s situation appears more controlled than in previous quarters.
Year-to-date, the cedi has recorded a depreciation of just 2.36 percent against the dollar, a figure considered modest given the broader macroeconomic challenges. With reserves also rising sharply, the BoG has more room to manoeuvre, offering confidence that future pressures can be absorbed with minimal disruption.
The outlook for the cedi remains cautiously optimistic. As Ghana prepares for further fiscal and structural reforms, all eyes will be on how the BoG continues to navigate the complexities of the currency market. For now, the cedi's current trajectory offers a welcome signal that stability is within reach, provided prudent economic management continues.
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