Ghana's cedi has posted a surprising 19% surge over the past month, appreciating from GHS 15.50 to GHS 13.05 per US dollar - one of its steepest rallies in recent years.
But according to ABSA Bank's latest "Ghana Market Insight" report, the rally may be too good to last.
The bank attributes the currency's strength to surging gold prices, elevated cocoa earnings, and improved foreign reserves, now covering 3.0 months of imports - up from 1.8 months a year ago.
This boost, fueled by geopolitical gold demand and Ghana's stable cocoa output amid regional supply concerns, has helped stabilize the cedi.
