Ghana’s Cedi Under Pressure as African Currencies Take Different Paths

Accra, Ghana — Ghana’s cedi is facing renewed pressure against the US dollar as demand for foreign currency rises.

The cedi weakened from about 10.90 to 11.00 per dollar in one week, according to market data.

The pressure is being linked to strong demand for dollars from companies and offshore investors, while available supply has struggled to keep pace.

The situation is different in several other African markets.

Uganda’s shilling has strengthened, helped by foreign currency inflows from charities and commodity exporters. Zambia’s kwacha is also expected to remain relatively stable, supported by strong copper prices.

Nigeria’s naira has remained comparatively steady, helped by offshore investor inflows. Kenya’s shilling has also shown little movement.

The different performances show the varied economic conditions across African countries.

For Ghana, however, continued pressure on the cedi could increase the cost of imported goods and add to concerns about inflation and household spending.

Investors and businesses will be watching the currency market closely in the coming weeks.