The cedi is expected to continue its marginal gain this week as foreign exchange liquidity improves.
This follows the Bank of Ghana’s timely intervention.
Banks sought to exchange about $750 million for cedi liquidity in a bid to comply with the Bank of Ghana’s unified currency reserves.
The local currency witnessed some relief last week. Amidst a one million dollar foreign exchange support from the Central Bank, the local unit gained 0.82% weekly, eventually trading at a mid-rate of ¢12.18 to one dollar.
Similarly, the cedi closed stronger by 2.51% and 0.16% week-on-week against the pound and the euro in the retail market.
Analysts expect the improving foreign exchange liquidity to help strengthen the local unit in the coming days as banks continue to seek cedi liquidity for reserves.
Again, the approval of World Bank’s loans, totaling $350 million to support some developmental projects in the country, by Parliament, would boost inflows.
This would bolster the stability of the cedi in the near term.
The local currency is presently going for ¢12.50 in the retail market, having lost about 14% in value to the American greenback since January 1, 2023. It has also depreciated by about 24% on the interbank market.
Source: Myjoyonline