The cedi weakened 1.22% to the US dollar in the retail market last week, following depreciation pressures.
It also lost 0.65% to the pound and 0.19% against the euro on the retail market, despite Ghana’s inflation cooling to 23.2% in December 2023.
Though the Central Bank auctioned 20 million dollars for the Bulk Oil Distribution Companies in its first sale for 2024, it failed to tame the persistent corporate demand.
The Cedi closed trades on the retail market or the forex bureaus at GH¢12.33/$ against GH¢12.18/$ the previous week.
However, many analysts believe the expected $600 million inflows from the International Monetary Fund (IMF) after its board approval of the first review of Ghana’s program this Friday, January 19, 2024, should help improve market sentiments.
This will consequently shore up foreign exchange reserves and strengthen supply-side intervention.
The government last Friday, January 12, 2024, reached debt restructuring agreements with its official creditors, a move seen by many as a step in Ghana’s economic recovery.
So far this year, the local currency has lost about 1.50% in value to the dollar in the retail market.
