Cedi expected to maintain stability amid strong external buffers

The Ghana cedi is projected to remain stable in the coming months, bolstered by strong external reserves and a favorable economic environment, Fitch Solutions has revealed.

The firm highlighted that international reserves reached nearly a record US$7.9 billion in April 2025, providing approximately 4.0 months of import coverage.

This positive outlook is attributed to strong export performance and historically high gold prices, driven by geopolitical tensions and increased purchases by central banks.

“Combined with the authorities’ stated preference for a stronger exchange rate, we expect that the Bank of Ghana (BoG) will keep the currency broadly stable over the remainder of the year, helping to limit imported inflation,” the firm noted.

Since the beginning of 2025, the cedi has appreciated significantly, recording about 30% gains against the US dollar. Currently, it trades at GH¢12.00 per dollar in the retail market, while the Bank of Ghana’s Interbank FX rate quotes it at GH¢10.40 to the American greenback.

In June 2025, the cedi closed at GH¢10.35 per dollar on the interbank market, reflecting a slight decline of 0.9% month-on-month after experiencing a recovery driven by corrections in previous months.

The Bank of Ghana responded to rising foreign exchange demand from offshore investors, local banks, and corporates adjusting to new currency-matched Cash Reserves Ratio regulations by increasing foreign supply by 84.4% month-on-month to about US$1.7 billion.

This adjustment aimed to stabilize the US dollar to cedi exchange rate, although the central bank shifted from a 2-day to a 7-day forward sale and reduced volumes in the final two weeks of June, Joy Business reported.