The government has been urged to strengthen foreign exchange liquidity buffers, diversifying reserves, and enhancing domestic revenue mobilisation, to sustain the Ghana cedi’s performance.
According to Databank Research, transparent communication and continued engagement with multilateral partners will be vital to maintaining confidence and limiting contagion risks.
In its 2025 Quarterly Report, it said while foreign exchange support and strong reserves provide stability, mid-year reparations could exert downward pressure on the cedi.
“While foreign exchange support and strong reserves provide stability, mid-year reparations could exert downward pressure on the cedi. If implemented, Stephen Miran’s proposal to swap short-term U.S. treasuries for ultra-long bonds may destabilise the sovereign’s net foreign asset position, eroding investor confidence and prompting capital outflows from emerging markets, including Ghana”.
“We recommend strengthening FX [foreign exchange] liquidity buffers, diversifying reserves, and enhancing domestic revenue mobilisation. Transparent communication and continued engagement with multilateral partners will be vital to maintaining confidence and limiting contagion risks”, it added.
Domestically, Databank Research expects limited external shocks in the near term, with progress on International Monetary Fund (IMF)-Economic Credit Facility (ECF) programme benchmarks paving the way for additional financing.
It added that disinflation may remain sticky but should accelerate to the early seventeens in quarter 4 2025, aided by supply chain improvements.
Cedi on streak of fine performance
The Ghana cedi continued its appreciation against dollar and other major foreign currencies.
The Ghana cedi gained 6.25% week-on-week against the dollar in the retail market, cementing its position as the best currency among a basket of 15 sub-Saharan African currencies.
This took its year-to-date gains against the American greenback to 16.29%.
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