Cedi posts longest winning streak against dollar in four years

The Ghana cedi on Friday extended its winning streak against the US dollar to six consecutive weeks, appreciating a cumulative 6.2 percent since mid-July to trade at GH¢14.20 to the dollar — its strongest level since December 2022 — buoyed by high export commodity prices and tightened fiscal management.nnThe Bank of Ghana attributed the cedi’s performance to a combination of stronger foreign exchange inflows from cocoa and gold exports, improved remittance flows and reduced government borrowing pressure following the passage of the mid-year budget review with a narrower-than-expected deficit.nnBank of Ghana Governor Ernest Addison said the central bank had intervened in the foreign exchange market on only six occasions in the second quarter, compared with thirty-two interventions in the same period of 2025, reflecting genuinely improved supply conditions rather than managed appreciation.nnBusiness associations welcomed the stabilisation, noting that importers had been able to plan their purchases more effectively. The Ghana Association of Industries said at least fifteen manufacturing companies had restarted import orders they had deferred during last year’s volatility.nnThe International Monetary Fund, in its latest Article IV consultation update, cited the cedi’s stabilisation as evidence that Ghana’s post-crisis macroeconomic programme was gaining traction. The Fund noted that risks remained, particularly from any reversal in global commodity prices.nnCurrency traders cautioned that seasonal demand for foreign exchange in the fourth quarter — driven by importers stocking up before Christmas — typically creates depreciation pressure and that current gains could partially reverse between October and December.