The Ghana cedi has gained about 5% in November against the US dollar on the back of aggressive dollar sales by the Bank of Ghana (BoG). The cedi started the month trading at an interbank average of 16.25 cedis to 1 US dollar, however after the BoG ramped up its market intervention, the cedi is currently trading at 15.49 at the end of trading on November 27. The recent appreciation brings the year-to-date depreciation of the Ghana Cedi to 23%.

Economist and Fixed Income Strategist, Gameli Martey, estimates that the BoG has sold about $846.5 million in November alone after selling only about $500 million from August to October. Dr John Kwakye, Research Director at the Institute of Economic Affairs (IEA), has asked why the BoG is intervening so heavily in the market only a few weeks to elections.

With the latest available data showing BoG gross reserves at $7.5 billion at the end of August 2024, the full impact of the BoG’s aggressive intervention in the markets may not be known until at the end of the year. In the meantime, analysts expect the cedi to continue appreciating for the rest of the year as economic activities and accompanying demand for dollars reduces during the holiday season.