Cedi edges higher as GoldBod boosts dollar supply to banks

The Ghana cedi has shown slight improvement against the US dollar for the second week in a row, according to interbank market data. Analysts estimate the cedi has appreciated by nearly 1% from its weaker position just a week ago. This modest gain provides a small respite after the local currency faced persistent pressure since the third quarter of the year. The renewed strength is attributed to enhanced foreign exchange liquidity, particularly dollar inflows from the Ghana Gold Board (GoldBod).

GoldBod recently sold US$197 million to commercial banks at an exchange rate of 11.70 Ghanaian cedis per dollar. This significant dollar supply eased demand for the cedi, which had been on a near-weekly depreciation trend since last month. Every participating bank received the full amount it requested through GoldBod's GoFX platform, further alleviating liquidity concerns.

The intervention aligns with GoldBod's plan to supply a total of US$1 billion to commercial banks under its revised foreign exchange arrangements from gold exports in the artisanal and small-scale mining sector. Commercial banks have expressed optimism that the cedi's stability could be maintained if the improved liquidity support persists.