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Home Business Banking & Finance

Cedi Holds Firm on Interbank Market as Wide Retail Forex Spread Signals Demand Pressures

2 months ago
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A customer counts Ghana cedi banknotes at the Nima market in Accra, Ghana on Monday, March 11, 2024

A customer counts Ghana cedi banknotes at the Nima market in Accra, Ghana on Monday, March 11, 2024

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Cedi Holds Firm on Interbank Market as Wide Retail Forex Spread Signals Demand Pressures

The cedi, opened the week on a relatively stable note on the interbank foreign exchange market, but a widening divergence between official and retail forex rates is heightening concerns about underlying demand pressures and liquidity conditions.

Data from the Bank of Ghana (BoG) shows that the interbank rate on Tuesday, February 24, 2026, stood at a buying price of ₵10.89 and a selling price of ₵10.90 to the US dollar, marking a modest appreciation from Monday’s opening level of ₵10.96.

However, developments in the retail foreign exchange market point to a less benign picture.

At forex bureaus, the US dollar is trading at an average of ₵11.80, well above the official interbank rate. Commercial banks, meanwhile, are quoting an average rate of about ₵11.55, positioning themselves between the central bank’s rate and bureau prices. This pricing structure underscores a tiered foreign exchange market, reflecting uneven access to dollar liquidity.

The divergence extends beyond the US dollar.

On the interbank market, the British pound is trading at ₵14.70, but is averaging around ₵16.10 at forex bureaus. Similarly, the euro is quoted at ₵12.85 officially, compared with an average of ₵14.00 on the retail market.

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Liquidity constraints

The persistent gap between official and retail rates points to tight foreign exchange liquidity and demand–supply imbalances, particularly among retail buyers and small businesses that rely heavily on forex bureaus for immediate access to foreign currency.

For an import-dependent economy such as Ghana, bureau rates often represent the effective exchange rate faced by traders. As a result, elevated retail forex prices can translate directly into higher import costs, feeding into cost-push inflation pressures.

There are also broader market implications. A prolonged divergence between official and retail rates could undermine confidence among investors seeking greater predictability and transparency in exchange rate management.

Market outlook

In the days ahead, market attention will focus on whether interbank rates adjust gradually to narrow the gap, or whether improved liquidity conditions ease pressure on bureau rates.

With commercial banks currently selling the dollar at levels above the BoG interbank rate but below bureau prices, the market appears to be signalling underlying upward pressure on the official exchange rate.

How the Bank of Ghana manages liquidity conditions in the coming days will be critical in determining whether the cedi maintains its interbank stability or faces renewed depreciation pressures across the broader forex market.

Tags: cedidollarFXinterbank market
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