The depreciation of the Ghana cedi is expected to slow down this week as demand pressure subsides.
This is coming after the ample intervention by the Bank of Ghana in the forex market last week.
The Central Bank injected about $28 million into the market on Wednesday, August 28, 2024, through the 7-day forward auction and an additional $20 million to the Bulk Oil Distributing Companies. This helped meet the strong demand for the American greenback.
These interventions held the cedi steady for the rest of the week as demand pressures appeared to have waned.
The local currency however depreciated by 1.84% against the US dollar 1.43% versus the pound and 0.42% to the euro on the retail market last week.
This pushed the dollar to close the week at GH¢16.28 on the retail market.
Since the beginning of the year, the local currency has lost about 24% in value to the American greenback.
Meanwhile, Deloitte West Africa has indicated that the recent debt restructuring deal with Ghana’s external creditors will have a favourable impact on the local currency. This will in turn have a positive impact on imported inflation.
Source: JoyBusiness