Ghana cedi remains firm as dollar trades below GH¢11.70 throughout week

The Ghana Cedi remains broadly stable against major international currencies during the past week, with the US dollar trading below GH¢11.70 despite minor fluctuations in the interbank foreign exchange market.

Bank of Ghana data shows the dollar opened the review period at a buying rate of GH¢11.64 on Tuesday, October 27, and closed at GH¢11.65 on Tuesday, November 3, representing only a marginal depreciation of the cedi over the period.

The stability reflected in the narrow trading band of the US currency, moved between GH¢11.61 and GH¢11.65 on the buying side during the week.

The Cedi recorded its strongest performance against the dollar on Monday, November 2, when the buying rate fell to GH¢11.61, suggesting improved foreign exchange supply conditions in the market.

Although the dollar gained slightly on Tuesday, November 3, it remained comfortably below the GH¢11.70 mark, underscoring continued stability in the foreign exchange market.

The British pound sterling also traded within a relatively narrow range during the period, moving from a buying rate of GH¢15.54 on Tuesday, October 27, to GH¢15.63 on Tuesday, November 3.

Similarly, the euro experienced modest fluctuations, opening the period at a buying rate of GH¢13.01 and closing at GH¢13.05.

Market data showed that both the pound and euro weakened between Wednesday, October 28, and Thursday, October 29, reflecting a temporary strengthening of the cedi before the two currencies recovered in subsequent trading sessions.

The performance continues a recent trend of relative exchange-rate stability, helping to reduce uncertainty for businesses, investors and import-dependent firms.

The stable currency environment is expected to offer some relief to importers and corporate entities with foreign-currency obligations, as sharp exchange-rate swings often increase operational costs and planning risks.

With the dollar, pound and euro ending the review period, only marginally higher against the cedi, the latest figures suggest that Ghana's foreign exchange market remains largely calm, with the local currency continuing to hold firm against major trading currencies.

GNA