Cedi extends three-week rally as GoldBod dollar supply boosts liquidity

The Ghana cedi has experienced a three-week rally on the interbank market, with traders crediting the improvement to increased foreign exchange liquidity. This turnaround follows a period of depreciation in August and early September, driven partly by strong dollar demand to fund Christmas imports. Bank of Ghana Governor Dr Johnson Asiama explained the earlier pressure came from large payments, especially in the energy sector, which had only a minor impact on international reserves.

Traders and bank officials credit GoldBod's increased dollar supply as a key factor in the cedi's recent appreciation. GoldBod sold US$130 million during a spot sale on Tuesday at a rate of GH¢11.60 per dollar, below the prevailing market rate. This supply boost has eased demand pressures, leading some banks and traders to reduce their requests. The sales, facilitated through GoldBod's GoFX platform, complement the Bank of Ghana's liquidity support efforts.

GoldBod's program is projected to generate approximately US$1.5 billion in foreign exchange receipts, with US$1 billion earmarked for sale to commercial banks and US$500 million to the Bank of Ghana to bolster reserves. The sales will occur twice a week on Tuesdays and Thursdays, with participating banks submitting demand-based requests through the GoFX platform. Real-time access and detailed transaction reporting are part of the framework to ensure transparency and accountability.