Cedi Forecast Remains Stable Amid Seasonal Import Demand

The Ghanaian cedi's mixed performance in August has analysts predicting stability through the end of September. The local currency traded largely within expectations, remaining anchored around GH¢11.00 against the US dollar despite a modest correction from its strong mid-month appreciation.

According to Databank analysts, the Bank of Ghana is likely to increase foreign exchange support beyond $1 billion as seasonal import demand builds ahead of the festive season. This will be critical in determining whether the cedi stays closer to the lower end of the projected trading range of GH¢10.95 to GH¢11.76.

The Bank of Ghana's intervention has been attributed to easing pressures in the foreign exchange market, curbing speculative positioning and narrowing the cedi's year-to-date depreciation from 10.04 percent at the end of July to an average of 6.89 percent by the last trading day of August.