The Ghana cedi is expected to remain firm against the US dollar and other major foreign currencies in the near term, driven by a sustained build-up in reserves and improving liquidity conditions.
According to market analysts, these factors are expected to continue supporting supply-side interventions in the foreign exchange (FX) market.
Ghana’s foreign exchange reserves, excluding encumbered assets, rose significantly by 63% month-on-month in April 2025, reaching US$7.92 billion, equivalent to 3.7 months of import cover. This marked an increase from US$7.26 billion (3.3 months of import cover) recorded in March.
The uptick in reserves was largely attributed to stronger inflows from gold and cocoa exports as well as improved remittance receipts.
Databank Research said
“We believe the improved reserve position provided the necessary buffers for targeted supply-side interventions, enhancing FX market liquidity and helping to anchor the cedi, which has appreciated by 26.73% year-to-date.”
The firm also highlighted increased domestic optimism, noting that Ghana’s business confidence index rose from 99.7 points in February to 102.2 points in April 2025, suggesting a likely decline in demand for safe-haven assets—further reinforcing the cedi’s position.
Performance on the Market
Last week, the local currency continued to appreciate steadily across the major foreign currencies:
8.13% gain week-on-week against the US dollar
7.19% gain against the British pound
6.41% gain against the euro
The cedi closed the week at a mid-rate of GH¢12.30 to $1 on the retail market. As of the start of this week, it strengthened further, trading at GH¢11.80 to $1.
This places the cedi’s year-to-date (YTD) appreciation at an estimated 38%.
Analysts attribute the sustained momentum to subdued demand pressures and improved forex liquidity, conditions that have supported the local unit in recent weeks.
Source: Joy Business
