Cedi depreciation expected to slow down this week as demand pressure subsides – Reports

This week, the depreciation of the Ghana cedi is anticipated to ease as the pressure from high demand diminishes.

This follows a significant intervention by the Bank of Ghana in the foreign exchange market last week.

On August 28, 2024, the Central Bank injected approximately $28 million into the market via a 7-day forward auction and an additional $20 million to Bulk Oil Distributing Companies, addressing the heightened demand for US dollars.

These measures helped stabilize the cedi for the remainder of the week as demand pressures decreased.

Despite this stabilization, the cedi depreciated by 1.84% against the US dollar, 1.43% against the British pound, and 0.42% against the euro on the retail market last week.

Consequently, the dollar closed the week at GH¢16.28 on the retail market.

Year-to-date, the cedi has depreciated by around 24% against the US dollar.

However, Deloitte West Africa has suggested that the recent debt restructuring agreement with Ghana’s external creditors is expected to positively affect the local currency and mitigate imported inflation.