The Ghana cedi started this week strongly with a marginal gain against the US dollar in the retail market.

It sold at GH¢10.98 in the retail market and GH¢10.25 in the interbank market.

So far this year, the cedi has gained nearly 50% in value against the American greenback.

Last week, the local currency continued to make headway, supported by steady foreign inflows and soft demand for hard currency.

The cedi gained 6.52% week-on-week versus the US dollar in the interbank market, maintaining its position as the top performer among a basket of 15 sub-Saharan African currencies.

On the retail market, it appreciated by 12.3% versus the dollar, 9.6% against the pound and 11.5% against the euro.

However, a Reuters report indicated that offshore investors are gradually returning with forex demand as they seek to repatriate profits from their cedi investments.

Databank Research said “We believe that a steady demand trend may put some modest pressure on the GHS [cedi] in the near term.”

However, it expects ample liquidity in the market this week and the Bank of Ghana’s targeted support to help keep the cedi afloat.

Fitch Solutions revised its end-of-year forecast of cedi-to-dollar at GH¢13.0, from its previous projection of GH¢15.5 to one American greenback.

It is also forecasting a 12.9% appreciation against the US dollar in 2025.

According to the UK-based firm, its assumption is based on the cedi appreciating by 16% between late April 2025 and the middle of May 2025. This is on the back of higher gold prices.

“The cedi has appreciated by 16% between late April and the middle of May (time of writing) on the back of higher gold prices, resulting in our Country Risk team revising down their end-2025 forecast for the Ghanaian cedi to GH¢13.0/US dollar, from our previous projection of GH¢15.5/US dollar. We now forecast that the currency will strengthen by 12.9% over 2025, from GH¢14.7/US dollar at the end of 2024”.

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