The Ghana cedi has recorded a strong recovery against the US dollar, posting four consecutive days of gains between Tuesday, August 11 and Friday, August 14, 2026.
Recent foreign exchange market data indicates a significant improvement in the performance of the local currency, with increased dollar supply and easing demand helping to support the cedi.
Dollar Exchange Rate Falls Below GH¢11
Some commercial banks were quoting the US dollar at around GH¢11.30 on indicative rates, while Bloomberg showed the dollar at approximately GH¢10.96. The Bank of Ghana was quoting the US dollar at about GH¢10.98.
The latest figures represent a notable improvement compared with earlier in August, when some commercial banks were selling the dollar for more than GH¢12.
The cedi’s recent appreciation follows weeks of pressure on the local currency from July into the early part of August.
Bank of Ghana Forex Intervention Supports Cedi
Market participants have attributed the cedi’s recovery to several factors, including increased Bank of Ghana foreign exchange interventions, stronger inflows from the extractive sector and investments from offshore investors purchasing Ghanaian government bonds.
Easing demand for US dollars from businesses has also contributed to improved conditions in the foreign exchange market.
On Tuesday, August 11, the Bank of Ghana offered US$125 million to commercial banks through an FX auction. However, banks submitted bids totaling only US$85 million.
A similar situation occurred on Thursday, August 13, when the central bank again offered US$125 million, but commercial banks submitted bids worth approximately US$94 million.
The lower demand compared with the amount of dollars offered suggests that pressure on the foreign exchange market may be easing.
Cedi Could Continue to Gain
Some commercial banks and market participants expect the Ghana cedi to maintain its recent gains in the coming weeks.
Improved foreign exchange inflows, lower dollar demand from businesses and additional donor inflows are among the factors expected to support the local currency and strengthen Ghana’s foreign exchange reserves.
The Bank of Ghana has indicated that the recent recovery is consistent with its Exchange Rate Management Framework.
The central bank has also reassured businesses that there is no need to panic during periods of temporary pressure on the cedi, pointing to Ghana’s reserve position and its ability to intervene in the forex market when necessary.
Ghana’s Foreign Exchange Reserves Remain Strong
Ghana’s international reserves stood at approximately US$12.9 billion at the end of June 2026, providing the central bank with a significant buffer to support foreign exchange market stability.
Recent market data and calculations indicate that the Bank of Ghana has supplied more than US$8 billion to the foreign exchange market between January and July 2026 to improve liquidity, meet dollar demand and support the cedi.
The central bank sold approximately US$7.45 billion through its FX Intermediation Programme between January and July.
It also deployed about US$811 million through its FX Intervention Programme between January and June.
Combined, the interventions represent more than US$8.2 billion in foreign exchange market support so far in 2026.
Bank of Ghana Could Inject More Dollars Into Market
The total could rise to approximately US$9.2 billion by the end of August if the Bank of Ghana implements its plan to sell up to US$1 billion through the FX Intermediation Programme during the month.
The increased supply of US dollars, coupled with easing demand and stronger foreign exchange inflows, could provide further support for the Ghana cedi exchange rate in the short term.
For businesses, importers and consumers, a stronger cedi could help reduce some of the pressure associated with dollar-denominated transactions and imported goods.
Source: newsthemegh.com