Cedi Depreciates Modestly Despite Forex Support

The Ghanaian cedi has seen modest losses in the interbank market while remaining stable across the retail segment over the last two weeks. In the interbank market, the cedi depreciated by 0.47% against the US dollar and 1.36% against the pound sterling. It closed at mid-rates of GH¢11.69 to a US dollar and GH¢15.74 to the pound.

The retail market saw subdued activity with the cedi easing marginally by 0.21% against the US dollar. Despite this, the Bank of Ghana's estimated US$1 billion in forex support during July has helped to stabilize the currency.

According to Databank Research, the recent US$371 million IMF ECF disbursement should provide a useful liquidity buffer and anchor market expectations. However, they still expect underlying pressure from commercial demand and energy-related imports to keep the cedi on a mild weakening path.