The Bank of Ghana (BoG) reported on Monday, May 25, that the Ghana Cedi was buying at 11.6192 and selling at 11.6398 to the US dollar. The figures represent a slight shift from Friday’s rates, which closed with a buying rate of 11.6117 and a selling rate of 11.6233.
The recent currency fluctuations come amid heightened demand for foreign exchange, particularly driven by the energy sector following a rise in global crude oil prices sparked by US-Iran tensions. While the increased cost of oil imports has applied visible pressure on the local currency and fueled speculation regarding its stability, sources close to the foreign exchange market indicate that current sentiment remains stable.
Backed by a $14.42 billion reserve position, the central bank is equipped to meet seasonal forex demands. Speaking at the 130th Monetary Policy Press Briefing, BoG Governor Dr. Johnson Asiama dismissed panic, characterizing the current market pressures as temporary and tying them directly to routine corporate dividend distributions alongside elevated energy sector needs.
Dr. Asiama assured the public that the central bank maintains adequate currency buffers to curb excessive market volatility. He noted that the cedi remains fundamentally resilient, having appreciated by more than 40% last year.
Explaining the mechanics of the exchange market, the Governor stressed that “the cedi’s movement is an endogenous variable.” He further noted that “Appreciation or depreciation is normal, but excessive volatility is what the Bank watches closely.”