Ghana cedi to dollar rate: Latest Bank of Ghana rates for August 18

• The cedi has weakened slightly, with the dollar selling at GH¢11.0055 on August 18.

• The currency had gained 6.9% against the dollar in the previous week.

• Economists are assessing whether the gains are sustainable or driven by temporary forex support.

The latest figures represent the average interbank exchange rates used by commercial banks for transactions at the close of business on Monday, August 17.

The US dollar is buying at GH¢10.9945 and selling at GH¢11.0055, according to the BoG's daily exchange rates.

Also Read: Ghana cedi to dollar rate: Latest BoG rates for August 17

This is a reversal from Monday's rates, when the dollar was buying at GH¢10.9445 and selling at GH¢10.9555. The latest figures therefore show a GH¢0.05 increase in the dollar's selling rate, indicating a slight weakening of the cedi against the US currency.

The pound sterling has also moved higher. It is buying at GH¢14.9074 and selling at GH¢14.9235, compared with Monday's buying rate of GH¢14.8353 and selling rate of GH¢14.8501.

The euro is similarly trading above its previous rate, with a buying rate of GH¢12.7403 and selling rate of GH¢12.7529.

The latest movement comes after a sharp improvement in the cedi's performance over the past week. Bank of Ghana data showed the dollar's interbank buying rate falling from about GH¢11.75 on August 10 to GH¢10.94 on August 17, representing an appreciation of about 6.9% over the period.

However, the recent appreciation has also prompted debate about what is driving the cedi's strength and whether the gains can be sustained.

Also Read: Mahama says Ghana’s cedi is long overdue for a refresh

Economist and President of the APL, George Domfe, has argued that the source of the appreciation matters more than the appreciation itself. He said a stronger cedi could reflect genuine improvements in economic fundamentals, but could also result from foreign exchange intervention by the Bank of Ghana.

According to Domfe, sustained appreciation driven by increased domestic production, stronger exports, lower import dependence and improved productivity would be a more durable sign of economic progress than appreciation largely supported by central bank intervention.

The latest rates will therefore be closely watched as the cedi enters the second half of August, particularly as businesses, importers and consumers assess whether its recent gains can be maintained.

Also Read: Ghana cedi, Nigerian naira and Ugandan shilling expected to face pressure next week

Latest Bank of Ghana exchange rates for August 18