Cedi now going for ¢12.10 to a dollar; demand for American greenback surges ahead of Christmas

The Ghana cedi is now going for ¢12.10 against the US dollar on the forex or retail market.

This is despite forecasts by many analysts and research institutions that it will end the year at an average of ¢11.60 to the American greenback.

Checks at some forex bureaus indicate that the demand for the dollar is high two months before the Christmas season.

There had been significant foreign exchange demand from local corporates and importers ahead of the festive season.

However, the expected inflows of $600 million from the International Monetary Fund in November 2023 may reverse the recent pressure on the cedi.

Last week, the Central Bank auctioned $20 million to Bulk Oil Distribution Companies and $2.0 million for spot market interventions, interventions many analysts said were insufficient to meet the persistent foreign exchange demand.

Last week the cedi lost 0.17% in value against the dollar, closing at ¢11.84.

It also depreciated by 0.86% against the pound and 0.60% against the euro on the retail market.

On the interbank market, the cedi however posted a mixed performance.

It lost 0.73% week-on-week in value to the American greenback, whilst it made a marginal gain (+0.06%) to the euro. It remained stable to the British pound.

However, the depreciation of the cedi to the major foreign currencies may be more than in the past weeks.