GUTA hails Cedi’s recovery despite second-quarter pressure

The Ghana Union of Traders’ Associations (GUTA) has welcomed the recent stability of the Ghana cedi, describing its improved performance against major foreign currencies as a positive development for businesses despite the currency’s earlier depreciation during the second quarter of the year.

Speaking at the Second Quarterly Economic Outlook, organised by Channel One TV on Thursday, July 9, 2026, GUTA President Clement Boateng said the cedi has made a strong recovery, easing uncertainty for importers and traders.

“I would say the cedi has rebounded and is performing well. We even hope for further improvements, but I think the situation we find ourselves in currently is not all that bad,” he said.

According to Mr. Boateng, one of the most encouraging developments has been the narrowing gap between the Bank of Ghana’s interbank exchange rate and rates on the retail foreign exchange market, making it easier for businesses to plan their operations.

“If you look at the Bank of Ghana rate, it’s about GH¢11.30 thereabouts, and then on the retail foreign exchange market it’s around GH¢12.10 to GH¢12.15. I think that is not all that bad,” he stated.

He noted that the improved exchange rate environment has helped reduce uncertainty for traders who rely on foreign currency to finance imports.

The cedi’s recovery comes amid broader improvements in Ghana’s macroeconomic conditions, with inflation easing, interest rates declining and the country’s external reserves strengthening, helping to restore confidence in the economy.

To support the local currency, the Bank of Ghana injected US$2.01 billion into the foreign exchange market in June 2026. The intervention included US$1.2 billion through the Forex Intermediation Programme and an additional US$811 million under the Bank’s FX Intervention Programme.

Following the intervention, the cedi has stabilised at approximately GH¢11 to the US dollar on the interbank market, while retail market rates have hovered around GH¢12 per dollar, after experiencing depreciation earlier in the second quarter.

Economic analysts believe the earlier weakness of the cedi was largely driven by seasonal factors rather than deteriorating economic fundamentals. They attribute much of the pressure to increased demand for foreign exchange by multinational companies repatriating profits.

Analysts also point to rising geopolitical tensions in the Middle East, which have pushed up global crude oil prices and increased Ghana’s demand for foreign currency due to its dependence on imported petroleum products.

Despite these external pressures, GUTA believes the cedi’s recent stability is providing businesses with greater confidence and predictability, creating a more favourable environment for trade and investment.

Prince Antwi

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