The Ghana cedi is expected to remain stable this week against the US dollar and the other major foreign currencies due to improving foreign exchange liquidity on the market.
Last week, the local currency endured demand pressures but remained stable.
It ended the week with a 0.30% week-on-week gain against the US dollar, but depreciated 0.33% and 0.78% to the pound and euro respectively, on the retail market.
It, however, posted gains across the major trading currencies on the interbank market.
The improved performance was due to the Bank of Ghana’s sell-side intervention and improved forex inflows from the services sector. The foreign exchange demand was recorded for imports in the energy, manufacturing, and telecommunication sectors.
Analysts expect the Central Bank to keep reducing its foreign exchange intervention on the spot market in line with directives from the International Monetary Fund.
The cedi began last week’s trade on the retail market at a mid-rate of ¢11.74 to a dollar and held steady at ¢11.70 to a dollar till the week closed. The Bank of Ghana provided about $22.7 million in FX support.
So far in 2023, the local currency has lost about 11% in value to the dollar on the retail market, but 22% depreciation to the American greenback on the interbank market.