March 25 Market Update: Cedi Trades at GHS11.80 on Forex, GHS10.96 on Interbank
Why is the cedi GHS11.80 forex, GHS10.96 bank?
On March 25, Ghana’s local currency, the cedi , exhibited a noticeable divergence between the forex (retail) market and the interbank market . The cedi was quoted at approximately GHS11.80 to the US dollar in the forex market, while trading significantly stronger at about GHS10.96 on the interbank market, according to data associated with the Bank of Ghana . This spread between the two markets highlights ongoing structural dynamics in Ghana’s foreign exchange system , reflecting differences in supply, demand, and access to foreign currency. Understanding the Dual Rates The interbank rate is the official rate at which commercial banks trade foreign currency among themselves, often influenced by central bank interventions and policy measures. It typically reflects macroeconomic fundamentals and is more stable due to regulatory oversight. In contrast, the forex (or retail) market rate—sometimes referred to as the bureau de change or open market rate—is driven more directly by demand from busines…
