Cedi under fresh pressure as Christmas import demand drives dollar surge
The Ghana cedi is facing renewed pressure against the US dollar, recording its second monthly depreciation since May as demand for foreign exchange continues to rise. Market data and price quotes from several commercial banks show that the cedi depreciated by 1.86% in July, after appreciating by 3.30% against the dollar in June. The June […]
The Ghanaian currency, the cedi, is experiencing renewed pressure against the US dollar, marking its second monthly decline since May. The depreciation is attributed to a surge in demand for foreign exchange, notably for energy imports to meet the Christmas season's import requirements. The Bank of Ghana (BoG) had injected $2.01 billion into the market in June to counteract this, but the pressure resurfaced in July, with the cedi depreciating by 1.86% from July's previous month.
Market analysts attribute the current situation to businesses preparing for the December Christmas shopping spree, which are increasing their dollar imports. This demand, combined with the impact of crude oil prices on the foreign exchange needed for energy imports, has further exacerbated the cedi's decline. Despite these challenges, the BoG remains confident that the cedi will remain stable for the rest of 2026.
They anticipate supplying approximately $500 million to the market in September through its foreign exchange intermediation program, along with additional support from the Ghana Gold Board. The central bank also assures the market of its readiness to intervene when necessary to maintain market orderliness while allowing the exchange rate to remain flexible.
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