Ghana’s local currency, the cedi, is showing signs of stability this week following decisive action by the Bank of Ghana (BoG) to increase support in the foreign exchange (forex) market.
For months, the cedi has faced significant pressure, largely due to external debt obligations, rising import bills, and a global strength in the US dollar. However, the recent move by the BoG to inject more dollars into the market appears to be paying off.
“We’ve seen a more stable trend in the exchange rate this week,” said Kwame Asante, a forex trader in Accra. “Compared to the volatility we saw earlier this year, the central bank’s action is giving the market some breathing room.”
In its latest intervention, the BoG sold over $120 million in forex forward auctions and direct support to critical sectors such as oil marketing companies, pharmaceutical importers, and manufacturing businesses that rely on dollar transactions. This has helped meet pent-up demand and reduce panic buying.
Analysts believe that this forex injection has not only improved supply but has also restored some confidence in the cedi. As of Wednesday morning, the cedi was trading around GH₵12.30 to $1, nearly the same as the previous week — a notable shift from the rapid depreciation experienced in earlier months.
“While the cedi hasn’t gained massively, the key victory here is that it’s no longer falling rapidly,” said Linda Mensah, an economist based in Kumasi. “That alone helps businesses and importers plan better.”
The Bank of Ghana has also signaled its intent to continue with strategic interventions while urging exporters to repatriate earnings and for Ghanaians to reduce reliance on imports.
Despite this progress, some market players are calling for more long-term solutions such as increasing exports, strengthening local production, and reducing dollarization in everyday transactions.
For now, though, many Ghanaians are breathing a sigh of relief as the cedi holds steady. Whether this is a temporary pause or the beginning of a real turnaround remains to be seen — but the central bank’s efforts are clearly making a difference, at least in the short term.
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