Last week, the Ghana cedi demonstrated strength against the US dollar, benefiting from reduced demand pressure for the American currency.
Despite the Bank of Ghana injecting $1.3 million into the spot market, the local currency managed to gain 0.21% against the dollar, resulting in a year-to-date loss of just above 14%.
However, the cedi experienced marginal losses against the pound and the euro, depreciating by 0.33% and 0.79% week-on-week, respectively.
Looking ahead, there are expectations of an external debt restructuring before the first IMF review in September 2023, along with the Bank of Ghana’s final auction for Bulk Oil Distributors for the second quarter, scheduled for June 27, 2023. These factors are anticipated to influence the cedi’s performance in the near future.
Despite its robust showing last week, analysts predict a mixed performance for the local currency in the current week.
As of now, the cedi is trading at ¢11.70 to one US dollar at forex bureaus, while the Bank of Ghana’s rate stands at ¢10.99 for one dollar.