The Ghana cedi is expected to trade steadily this week as the Bank of Ghana intervenes in the market to cool off the pressure on the local currency.

Last week, the cedi came under renewed pressure despite support from the Central Bank to improve foreign exchange liquidity.

The local currency opened last week at a mid-rate of ¢11.50 pesewas to a dollar and traded steadily, losing 0.65% week-on-week on the retail market. It also depreciated 0.17% and 0.60% week-on-week versus the pound and the euro on the retail market.

In the 35th forex auction for the Bulk Oil Distribution Companies, the Central Bank allotted $20 million at a 30-day forward rate of ¢11.42 pesewas. The current forward rate indicated a 100 basis points increase from the previous auction.

The Bank of Ghana also provided ¢11.5 million dollars on the spot market to help tame demand pressures.

However, this was not enough to stabilise the cedi as local demand caused the local currency to lose ground last week.

 Since January 2023, the cedi has lost about 11.40% to the American greenback on the retail market and 22.1% on the interbank market.

Source: myjoyonline.com