Cedi Outlook Strengthens on Weak Dollar and $360 Million World Bank Support
The cedi is expected to post a stronger performance against the US dollar in the coming week, buoyed by positive global market sentiment and the World Bank’s recent approval of $360 million to support Ghana’s macroeconomic recovery efforts.
According to market watchers at Databank Research, the outlook for the USD/GHS pair remains favourable as the American greenback struggles to reclaim the critical 97.70 level on the Dollar Index.
“We maintain a positive outlook for the USD/GHS pair in the coming week as the dollar continues to struggle… With expectations of the US$370 million IMF ECF disbursement strengthening alongside the recent World Bank USD 360 million DPO2 approval, we expect sentiment to remain measured,” the firm noted in its weekly currency update.
Databank, however, flagged the US Federal Reserve’s upcoming policy meeting in late July 2025 as a key risk event. The meeting is expected to provide fresh guidance on US interest rate policy, which could significantly influence dollar flows and impact the cedi’s stability.
Despite the broadly positive outlook, the cedi closed last week weaker against major trading currencies. On the interbank market, the local unit depreciated by 0.10% against the US dollar, closing at a midrate of GH¢10.31 after trading within a narrow band of GH¢10.3048 to GH¢10.3152.
The retail market recorded a sharper decline, with the cedi losing 1.57% against the greenback to sell at GH¢12.75. This move has trimmed the cedi’s year-to-date gains, falling from 41.78% at end-May to 21.76% at end-June 2025.
The cedi also posted week-on-week losses of 2.06% against both the British pound and the euro, settling at GH¢17.00 and GH¢14.60 respectively.
As of the start of this week, the cedi opened trading at GH¢10.35 per dollar on the interbank market and GH¢12.70 in the retail market, maintaining a year-to-date gain of 21.75%.
