The Ghana cedi recorded mixed performance in recent trading, appreciating slightly against the US dollar in the retail market but losing ground on the interbank market.
In retail trading, the cedi gained 1.06%, with the exchange rate ranging between GH¢11.40 and GH¢11.90 per dollar. This brings its year-to-date appreciation to 31.85%, cementing its status as one of the world’s best-performing currencies.
Against other major currencies, the cedi appreciated by 0.64% to GH¢15.65 per pound sterling but weakened by 0.73% to GH¢13.70 per euro.
Conversely, on the interbank market, the cedi slipped by 1.41%, ending at GH¢10.65 to the dollar.
Databank Research noted that the currency exhibited modest stability, strengthening from GH¢10.80 to GH¢10.65 despite corporate demand pressures and limited foreign exchange support.
In the retail market, demand pressures limited gains, though “quote shading” helped keep the cedi within a tight range, resulting in modest end-of-fortnight appreciation.
Looking ahead, Databank expects short-term pressure on the cedi to increase as global tensions ease and the CBOE Volatility Index (VIX) stabilises—factors that could redirect capital flows from gold into US dollar assets.
As of August 18, 2024, the cedi opened the week steady at GH¢11.90 per US dollar in retail trading.
