The Ghana cedi would remain relatively stable this week, following the recent approval of the $800 million cocoa syndication loan by Parliament, and the $102.6 million African Development Bank budget support programme for Ghana.
While market activity appears dull, analysts expect some stability in the near term.
They anticipate a slight improvement in foreign exchange liquidity in the near term, which should bolster cedi against the major foreign currencies.
Last week, the depreciatory pressures on the local unit continued to heighten amidst limited forex support.
The Bank of Ghana auctioned $20 million to the Bulk Oil Distribution Companies (BDCs), while providing $2 million on the spot market.
However, these central bank supports proved insufficient to hold up the cedi as it weakened at the week’s final trading session.
The cedi lost 0.41% week-on-week against the dollar, 0.41% to the pound and 0.78% against the euro on the retail market. The depreciation was however lower than the preceding week.
This took its year-to-date loss to about 12.0%. The local currency traded at ¢12.13 to one dollar but presently going for ¢12.18.
Similarly, on the interbank market, the cedi weakened 0.32% week-on-week versus the dollar, 1.80% against the euro and 1.40% against the pound. The year-to-date depreciation to the US dollar stood at about 23.14%.