Ghana’s remarkable currency recovery has reignited optimism across the financial sector and the business environment, with the cedi staging a strong rally in recent weeks.
Over the past three weeks, the local currency appreciated significantly against the world’s major trading currencies, reversing much of its earlier losses and restoring confidence among businesses, investors, and consumers.
According to recent market data, the cedi appreciated by 5.66 percent against the US dollar, 6.76 percent against the British pound, and 6.24 percent against the euro in the interbank market. The rebound has largely been attributed to substantial foreign exchange liquidity support from the Bank of Ghana, which has eased pressure on the market and discouraged speculative demand.
In this exclusive interview, The Vaultz News speaks with Ms Gifty Annor-Sika Asantewah, Financial Market Expert and President of Women In Forex Ghana, who shares her assessment of the cedi’s impressive turnaround, the Bank of Ghana’s intervention strategy, and what businesses and investors should expect in the months ahead.
“The Cedi Has Regained Market Confidence”
Ms Annor-Sika Asantewah believes the recent appreciation is far more than a temporary market reaction.
“What we are witnessing is a restoration of confidence. Markets are driven as much by psychology as they are by liquidity. Once participants become convinced that sufficient foreign exchange is available, speculative demand naturally begins to decline. That is exactly what we have seen over the past two weeks.”
Ms Annor-Sika Asantewah
She explained that the Bank of Ghana’s timely interventions have significantly altered market sentiment.
“The central bank did not merely inject foreign exchange. It sent a powerful signal that it is prepared to support market stability. That reassurance has encouraged genuine market participants while discouraging speculative positions that previously placed unnecessary pressure on the cedi.”
Ms Annor-Sika Asantewah
According to her, the appreciation across the dollar, pound, and euro demonstrates that the recovery is broad-based rather than isolated. “The simultaneous gains against all three major currencies indicate that this is a genuine strengthening of the cedi rather than weakness in any single foreign currency,” she told Vaultz News.
Bank of Ghana’s Intervention Changed Expectations
Many analysts had initially anticipated relatively modest foreign exchange injections at the beginning of June, with larger interventions expected later in the month. However, the Bank of Ghana surprised the market with sizeable discounted foreign exchange liquidity. Ms Annor-Sika Asantewah, meanwhile, described the move as decisive.
“Timing matters immensely in foreign exchange markets. The Bank of Ghana acted earlier and more aggressively than many participants expected. That proactive approach changed market expectations almost overnight.”
Ms Annor-Sika Asantewah
She continued saying, “When central banks demonstrate credibility through action rather than words, markets respond very quickly. The recent appreciation reflects that confidence.”
The financial market expert noted that previous episodes involving foreign exchange interventions ranging between US$1.2 billion and US$1.5 billion have historically contributed to greater exchange rate stability.
“History provides useful guidance. Ghana has experienced periods where substantial foreign exchange support produced noticeable improvements in exchange rate stability. The current episode appears to be following a similar path.”
Ms Annor-Sika Asantewah
Why the Cedi Could Strengthen Further
Although the cedi has already recorded impressive gains, Ms Annor-Sika Asantewah believes the recovery may not be over. “Provided foreign exchange liquidity continues to improve and market discipline is maintained, I believe the cedi still has room to appreciate further.,” she opined.
She projected that the exchange rate could move closer to GHS10.50 per US dollar if current conditions remain favorable.
“My assessment is that if the remaining foreign exchange allocation continues to enter the market as expected, and external conditions remain supportive, we could see the cedi trading around the GHS10.50 per US dollar mark in the near term.”
Ms Annor-Sika Asantewah
However, she cautioned that sustained appreciation would depend on several factors beyond central bank intervention. “The Bank of Ghana can provide liquidity support, but long-term exchange rate stability also depends on export earnings, fiscal discipline, investor confidence, and responsible demand for foreign currency,” she explained.
Businesses Should Capitalise on the Opportunity
The stronger cedi has created opportunities for importers, manufacturers, and businesses that depend heavily on foreign exchange.
According to Ms Annor-Sika Asantewah, companies should avoid assuming that exchange rates will always move in one direction.
“Businesses should use this period to strengthen their financial planning rather than become complacent. Currency markets remain dynamic, and prudent risk management should always be part of corporate strategy. However, I do not see the cedi becoming so volatile and weakening hugely like we experienced under the previous administration.”
Ms Annor-Sika Asantewah
She advised importers to review procurement plans while exporters should focus on improving productivity and competitiveness. “Exchange rate improvements should not reduce the urgency for businesses to innovate. Competitive firms prepare for both favourable and challenging market conditions,” she added.
She also encouraged small and medium-sized enterprises to deepen their understanding of foreign exchange risk management.
“Financial literacy remains one of the strongest tools available to businesses. Understanding how exchange rates affect pricing, financing, and profitability allows firms to make better strategic decisions.”
Ms Annor-Sika Asantewah
Investors Watching the Next Phase
Global investors are closely monitoring developments in Ghana’s foreign exchange market. Ms Annor-Sika Asantewah believes consistency will be critical.
“International investors appreciate predictability. When they observe stable monetary policy, credible interventions, and improving market conditions, confidence naturally increases.”
Ms Annor-Sika Asantewah
She added that maintaining transparency would remain essential.
“Markets reward consistency. Every successful intervention should reinforce confidence rather than create dependence. The objective is a stable and well-functioning foreign exchange market.”
Ms Annor-Sika Asantewah
She also highlighted the importance of maintaining adequate foreign reserves.
“Strong reserve management provides policymakers with flexibility during periods of volatility. It strengthens the country’s ability to respond effectively whenever external shocks emerge.”
Ms Annor-Sika Asantewah
Outlook for the Cedi
Despite global economic uncertainties, Ms Annor-Sika Asantewah remains cautiously optimistic about Ghana’s currency outlook.
“The recent appreciation demonstrates what is possible when sound monetary policy, adequate liquidity, and improved market confidence work together. While challenges remain, Ghana has shown that decisive policy action can produce meaningful results.”
She concluded by stressing that sustained stability would require collaboration among policymakers, businesses, financial institutions, and market participants.
“The cedi’s recovery should be viewed as an opportunity to strengthen economic fundamentals rather than celebrate short-term gains alone. If discipline is maintained across the economy, the current momentum can become the foundation for a more resilient foreign exchange market.”
Ms Annor-Sika Asantewah
For businesses, investors, and households alike, the recent performance of the cedi offers renewed optimism. Whether the currency continues its upward trajectory will largely depend on the pace of future foreign exchange inflows, the consistency of monetary policy, and the confidence of market participants. If current trends persist, Ghana may be entering a period of greater currency stability that supports investment, trade, and broader economic recovery.
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