Reuters has predicted further gains for the Ghana cedi to gain strength in this week. It attributed the forecasted gain to continued remittance inflows and interventions from the central bank.

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The Ghanaian cedi has appreciated significantly this year. Since the beginning of 2025, it has gained 24.1% against the US dollar, 16.2% against the British pound, and 14.1% against the euro. As of May 2025, the exchange rate stands at GH₵11.85 per dollar, GH₵15.84 per pound, and GH₵13.34 per euro.

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According to Data from the London Stock Exchange Group (LSEG), suggests that the cedi was trading at 10.25 to the dollar on Thursday, compared to 11.55 per dollar at last Thursday's close.

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"The cedi has remained on the front foot for much of the last week, however, we've observed some increased hard currency demand from offshore players in the most recent sessions as they look to take profit from GHS investments,"

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"We reckon we'll continue to see support around the current 10 levels in the very near term, however, the local unit will likely begin to rally again when this demand is cleared as the central bank continues to provide daily support to the market," Sedem Dornoo, a senior trader at Absa Bank Ghana, said.

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According to the Governor of the BoG, Dr. Johnson Asiamah, the central bank plans to implement a series of reforms aimed at monitoring the forex market. This, he explained, will aid in preventing illegal activities that could weaken the cedi as well as destabilize the market.

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The Bank of Ghana (BoG) has indicated that it is focused on stabilizing the Ghanaian economy rather than aiming for a specific exchange rate for the cedi's appreciation.

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"As much as we don’t want to see the Ghana cedi depreciate excessively, we don’t keep a target rate that we want to defend,” the BoG governor added.

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As of Friday, May 30, the average interbank rates used by commercial banks for transactions at the close of business showed the US dollar buying at GH₵10.27 and selling at GH₵10.28.

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The British pound is buying at GH₵13.84 and selling at GH₵13.86. The euro is currently being bought at GH₵11.66 and sold at GH₵11.67.

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Meanwhile, the Monetary Policy Committee has kept the policy rate unchanged at 28 percent. Dr Asiama explained that the committee took the decision in anticipation of the inflation rate declining at a faster rate.

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“Despite these positive developments, the committee observed that the current level of inflation remains high relative to the medium-term target and will require maintaining the policy rate at 28.0%,” he said.

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Ghana’s inflation stands at 21.2 percent as of April 2025. President John Mahama has projected that single-digit inflation will be reported by the country at the end of the first half of the year.

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In an address at the Ghana-EU Business Forum held at the Kempinski Hotel in Accra yesterday, President Mahama stated that his government will achieve this feat by effecting a tighter monetary policy rate, cutting expenditure, and reducing debt accumulation.

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President Mahama noted there are positive signs that the country is recovering in a disciplined and inclusive way, pointing to the fact that Ghana’s international reserves have increased from $8.9 billion in December 2024 to $10.6 billion by April 2025. This is equivalent to almost five months of import cover.

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During the 2025 budget presentation on March 11, Finance Minister Dr. Cassiel Ato Forson announced the government’s objective to reduce inflation to 11.9% by the end of the year.

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KENYA

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On the other hand, the Kenyan shilling is expected to hold steady next week. The shilling traded at 129.00/50 per dollar, compared with last Thursday's close of 128.95/129.45.

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While Kenya's shilling is expected to remain steady, and Nigeria's naira to stay range-bound, traders said.

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