The Ghanaian cedi is anticipated to experience some relief against the US dollar this week, given the recent weakening of the American currency amid potential recession concerns in the USA.
Last week, the cedi managed to recover some ground against major currencies due to easing pressures from corporate demand.
The Bank of Ghana allocated $20 million to the Bulk Oil Distributing Companies at a forward rate of GH¢15.56 per dollar.
This intervention may have contributed to easing corporate demand.
As a result, the Ghanaian cedi appreciated by 2.37% against the pound and 1.18% against the euro on a weekly basis, while maintaining stability at a mid-rate of GH¢15.88 per US dollar.
Year-to-date, the cedi has depreciated by approximately 23.11% against the US dollar, currently trading at GH¢15.87 per dollar in the retail market.
Additionally, the Government of Ghana plans to pay GH¢6.1 billion in coupons on restructured domestic bonds this month.
Analysts suggest that this could stimulate demand for foreign exchange funded by the cedi, as some foreign investors might look to repatriate their funds.
This situation, coupled with ongoing corporate demand pressures, could present some risks of further depreciation for the cedi.