Cedi to weaken for third weak running; going for ¢11.85 to one dollar

The Ghana cedi is expected to weaken for the third week running against the US dollar.

This follows rising foreign exchange demand from local corporates and importers ahead of the Christmas season.

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

Nonetheless, the rate of depreciation is not alarming.

The local currency depreciated last week following limited foreign exchange support from the Bank of Ghana.

It 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.