The Ghana cedi posted a mixed performance last week as demand pressures on the US dollar eased for most of the week.
However, this week, the cedi is expected to extend its losing run albeit marginally because foreign exchange demand is outstripping supply.
But it began the week stable to the American greenback with the year-to-date depreciation at 17.88%. It is presently going for GH¢14.90 to a dollar on the retail forex market.
Despite the Central Bank not intervening in the spot market, the cedi gained 0.17% week-on-week against the US dollar to end the week’s trades at a mid-rate of 14.83 to one American greenback.
The unit also depreciated 2.90% week-on-week against the pound following the hotter-than-expected UK inflation.
Additionally, the cedi lost 6.03% week-on-week to the euro due to encouraging Eurozone economic indicators.
Ghana’s reserves (excluding encumbered assets) increased by 4% month-on-month to $4.3 billion in April 2024, albeit a 6% month-on-month increase in refined oil import bill.
Currency analysts believe this growth emanated from positive trade balances and the $300 million World Bank inflow in April 2024.
As a result, the Central Bank improved its spot interventions by providing $94 million month-to-date (vs $10 million in Apr 2024) support to help keep the cedi afloat.
Source: Myjoyonline