The Ghanaian cedi is projected to record modest stability this week, buoyed by renewed positive sentiment stemming from the World Bank’s US$360 million concessional loan disbursement.
The support is expected to provide much-needed foreign exchange (FX) liquidity to calm recent volatility in the local currency market.
According to market watchers, including Databank Research, this injection, combined with enhanced FX supply, could help anchor the cedi’s outlook after weeks of sustained depreciation.
“The marginal setback of the cedi, driven by heightened seasonal demand and weak sentiment, confirms our earlier expectations of near-term pressure during this period,” Databank said in its latest market note. “We believe this trend was fuelled by bearish expectations, delayed FX supply interventions, and the drag from capital controls on FX transactions.”
Last week, the local currency came under considerable pressure across both the interbank and retail markets. On the interbank front, the cedi weakened from a midrate of GH¢11.40 to GH¢12.15 per US dollar over a two-week period. Losses were also recorded against the British pound and the euro, which depreciated by 6.41% and 6.28%, respectively, to settle at GH¢16.45 and GH¢14.23.
The retail market reflected similar sentiments, with the cedi recording a 6.72% decline against the dollar to close at GH¢13.40. It also posted losses against the pound and euro, which closed at GH¢17.60 and GH¢15.45, respectively—up from GH¢16.55 and GH¢14.35.
As of the beginning of this week, the cedi is trading at approximately GH¢13.60 per US dollar in the retail market.
While the World Bank’s inflow offers a temporary reprieve, currency analysts caution that external factors could still weigh on the cedi. In particular, investors will be closely monitoring the upcoming US Federal Reserve Monetary Policy Committee (MPC) decision.
