Cedi Strengthens on Central Bank Support; Kwacha Faces Pressure as East and West African Currencies Stay Steady

(3 Minutes Read)

As global economic uncertainty persists—fuelled by geopolitical tensions and lingering effects of U.S. trade policies—African currencies remain sensitive to both domestic fundamentals and international developments. A cautious but active policy posture by regional central banks appears to be the defining factor in navigating these challenges.

Ghana’s cedi is projected to gain modestly against the U.S. dollar in the week ahead, supported by ongoing interventions from the central bank and improved liquidity in the interbank market. The cedi recently appreciated slightly, trading at 15.4300 per dollar, thanks to strategic dollar injections and tighter bid-offer spreads.

In contrast, Zambia’s kwacha continues to struggle despite a slight uptick, as strong demand for foreign currency persists amid weak inflows and delayed debt restructuring. The kwacha traded at 28.67 per dollar, showing minimal improvement but remaining vulnerable.

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Meanwhile, currencies in Kenya, Nigeria, and Uganda are expected to remain largely stable. Kenya’s shilling is benefiting from a balanced forex market and central bank backing, while Nigeria’s naira has steadied around 1,600 following robust central bank interventions and ongoing reforms. Uganda’s shilling is also holding firm, helped by reduced dollar demand during the Easter period. Overall, central banks across the region are playing a key role in stabilising their currencies amid global uncertainty and domestic fiscal challenges.