The Ghanaian cedi is expected to face continued pressure this week as demand for foreign exchange remains high, despite Ghana’s progress under the International Monetary Fund’s (IMF) Extended Credit Facility programme.
The local currency declined against major global currencies last week, fuelled by increasing demand from both domestic and offshore markets.
To address this, Ghana’s Central Bank accepted all bids—amounting to $89.3 million—in its weekly seven-day foreign exchange auction.
However, this intervention did little to bolster the cedi, which fell by 1.06% week-on-week, settling at an average of GH¢16.55 per U.S. dollar.
The currency also slipped 0.23% and 0.28% against the British pound and the euro, respectively.
This week opened with the cedi trading at GH¢16.65 to the dollar, extending its slide.
Since the start of the year, the cedi has lost over 26% of its value against the dollar, ranking it among the three weakest currencies in Sub-Saharan Africa.
Looking ahead, the Central Bank plans an additional $20 million auction directed at Bulk Oil Distribution Companies (BDCs) in a bid to relieve some of the demand pressure.
Source:classfmonline.com