The cedi’s value decreased in relation to the dollar last week due to renewed pressure from corporate demand, bringing its year-to-date loss to roughly 2.5 percent.
This is in spite of the foreign exchange (FX) intervention by the Bank of Ghana. The Bulk Oil Distribution Companies won $20 million in the Forward Forex Auction, which the Central Bank held after selling $7 million on the spot market.
The local currency, however, was unable to compete with the US dollar. Due to demand from the energy sector to pay off US dollar debt obligations and the agricultural sector for seasonal restocking, it lost 0.60% week over week against the US dollar.
The retail market saw the cedi lose 0.64% of its value against the pound each week, but it held steady against the euro.
In the retail market, it is currently trading for GH¢12.48 against the US dollar, while on the interbank market, it is selling for GH¢12.07.
This week and the Chinese holidays, which fall from February 9, 2024, to February 15, 2024, are predicted by analysts to be comparatively stable for the cedi.
The expectation is that importers have restocked in preparation for the forthcoming Chinese holidays, which will reduce corporate foreign exchange demand this week.
