Cedi set to continue resurgence this week as it gained 0.30% against dollar last week

The Ghana cedi made gains last week as it made a 0.30% week-on-week gain against the US dollar.

The local currency endured demand pressures last week but remained stable.

It however depreciated 0.33% and 0.78% to the pound and euro respectively on the retail market.

The cedi is expected to remain stable this week against the US dollar and the other major foreign currencies due to improving foreign exchange liquidity on the market.

The improved performance was due to the Bank of Ghana’s sell-side intervention and improved forex inflows from the services sector.

The cedi began last week’s trade on the retail market at a mid-rate of ¢11.74 to a dollar and held steady at ¢11.70 to a dollar till the week closed. The Bank of Ghana provided about $22.7 million in FX support.

The foreign exchange demand was recorded for imports in the energy, manufacturing, and telecommunication sectors.

Analysts expect the central Bank to keep reducing its foreign exchange intervention on the spot market in line with directives from the International Monetary Fund.

So far in 2023, the local currency has lost about 11% in value to the dollar on the retail market, but 22% depreciation to the dollar on the interbank market.

Bank of Ghana Exchange Rates pic.twitter.com/n6TBDUcU3u

— Bank of Ghana (@thebankofghana) July 25, 2023