The Ghana cedi lost ground on the interbank market last week, with market analysts warning that near-term pressures against the US dollar could intensify.
Research firm Databank attributed the projected strain to easing global tensions and a stabilising CBOE Volatility Index (VIX), which may divert investor flows from gold into US dollar assets. Since gold remains one of Ghana’s major foreign exchange earners, such a shift could deepen pressure on the local currency.
Over the two-week trading period, the cedi depreciated by 1.41% against the US dollar, 2.82% against the euro, and 3.73% against the British pound, closing at GHS10.65/USD, GHS12.47/EUR, and GHS14.45/GBP on the interbank market.
In contrast, performance on the retail market was mixed. The USD/GHS pair traded between 11.50 and 11.90, with the cedi posting a modest 1.06% gain. It also appreciated by 0.64% against the pound to close at GHS15.65/GBP but slipped by 0.73% against the euro to settle at GHS13.70/EUR.
Databank described the interbank market trend as showing “modest stability,” noting that the cedi firmed slightly from GHS10.80/USD to GHS10.65/USD despite renewed corporate demand and limited foreign exchange inflows.
However, in the retail segment, persistent demand pressures kept the currency largely range-bound, limiting any significant recovery.
Looking ahead, analysts caution that the outlook remains fragile, warning that the cedi could weaken further if investor appetite continues to tilt towards the US dollar at the expense of commodities such as gold.
