Renewed corporate demand pressures saw the cedi losing value to the dollar last week, increasing its year-to-date loss to about 2.5%. This is despite the Bank of Ghana’s foreign exchange (FX) intervention.
The Central Bank sold $7 million on the spot market and auctioned $20 million to the Bulk Oil Distribution Companies in the Forward Forex Auction. However, the local currency could not hold its ground against the American greenback.
It lost 0.60% week-on-week to the dollar due to demand from the energy sector to settle US dollar debt obligations and the agricultural sector for seasonal restocking.
The cedi also shed 0.64% week-on-week versus the pound but remained stable against the euro on the retail market. It is presently going for GH¢12.48 against the US dollar in the retail market, whilst selling at GH¢12.07 on the interbank market
Analysts expect the cedi to be relatively stable this week and during the Chinese holidays that will span from February 9, 2024, to February 15, 2024.
They believe corporate foreign exchange demand will be lower this week as importers have generally restocked in anticipation of the upcoming Chinese holidays.