The Ghana cedi recorded a mixed performance over the past two weeks, experiencing mild depreciation in the interbank market while showing relative strength in the retail segment—an outcome analysts say points to a potential rebound in the near term.

In the interbank market, the US dollar strengthened slightly against the cedi, closing at a midrate of GH¢10.88, up from GH¢10.70. Meanwhile, the cedi appreciated against other major currencies, with the British pound and the euro declining by 2.70 per cent and 2.57 per cent to settle at GH¢14.78 and GH¢12.80 respectively.

Retail market trends, however, painted a different picture. The dollar eased modestly to GH¢11.90 from GH¢12.15, while the pound and euro gained 1.58 per cent and 2.18 per cent, closing at GH¢15.80 and GH¢13.75 respectively.

Speaking on the performance, Databank Research attributed the interbank weakness to renewed foreign exchange demand outpacing supply, while softer retail demand may have prompted slight price adjustments to stimulate activity.

“As expected, renewed demand exceeding FX supply caused modest cedi losses in the interbank market, while relatively subdued retail demand likely prompted slight price adjustments to attract buyers,” Databank noted. “Looking ahead, we forecast a stronger cedi over the next two weeks, supported by anticipated FX injections aimed at easing bearish market expectations.”

On the global front, Databank pointed to shifting capital flows and sustained dollar weakness, as some sovereign investors cautiously reduce exposure to US Treasury holdings despite attractive yields. The outlook is further influenced by expectations of a more accommodative US Federal Reserve stance.

“Our positioning anticipates these flows, with a base-case outlook of GH¢10.70 to the US dollar,” the report added.

Meanwhile, the cedi opened trading this week at GH¢12.00 to the US dollar at forex bureaus. Year-to-date, the local currency has appreciated by 1.88 per cent against the greenback, reinforcing optimism about its medium-term prospects.