Cedi stages strong recovery as dollar supply improves, demand eases
The Ghana cedi has staged a strong recovery against the US dollar, recording four consecutive days of gains between Tuesday, August 11 and Friday, August 14, 2026.
Between August 11 and August 14, 2026, the Ghana cedi demonstrated a robust recovery against the US dollar, climbing for four consecutive days. According to JOYBUSINESS, the improvement in the local currency’s value was evident in the foreign exchange market. Commercial banks were offering the dollar at rates ranging from GH¢11.30 to GH¢10.96, while the Bank of Ghana quoted the dollar at GH¢10.98. This marked a significant improvement from earlier in the month, when commercial banks were selling the dollar for over GH¢12.
The recovery was attributed to better interventions by the Bank of Ghana, inflows from the extractive sector, and offshore investors purchasing local bonds. Easing demand for dollars from businesses also played a role in the stronger cedi. On August 11 and August 13, the Bank of Ghana offered US$125 million to commercial banks via auctions; however, bids were only US$85 million and US$94 million respectively, signaling a potential easing of demand.
While the impact of recent regulatory measures on commercial banks’ dollar holdings on the cedi’s performance remains unclear, market outlooks suggest that the cedi’s gains may continue. Commercial banks anticipate further increases in the coming weeks due to improved foreign exchange inflows and reduced business demand. Additionally, donor inflows are expected to boost the market, further strengthening Ghana’s reserves.
The Bank of Ghana confirmed that the recent cedi recovery aligns with its Exchange Rate Management Framework. It has assured businesses that there is no need for panic, emphasizing the country's strong reserve position of US$12.9 billion at the end of June. The BoG's interventions, amounting to over US$8 billion from January to July 2026, suggest a substantial ability to support the foreign exchange market.
If the Bank proceeds with plans to sell up to US$1 billion through its FX Intermediation Programme this month, the total market support could reach US$9.2 billion by the end of August.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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