The Ghanaian cedi saw a positive start this week following a significant dollar sale by the Bank of Ghana on November 11, 2024. On the interbank market, the cedi appreciated by 0.2%, trading at GH¢16.33 per US dollar, while on the retail market, the rate stood at GH¢17.00 to the dollar.
Last week, the Bank of Ghana took decisive action to stabilize the currency market through targeted interventions. These measures included two-day and seven-day foreign exchange auctions, which led to the sale of approximately US$214.04 million—the highest auction total for a single week in 2024. This intervention helped to address some of the backlog in foreign exchange demand, softening the cedi’s rate of depreciation.
Despite these efforts, the cedi experienced slight losses against major global currencies. Week-on-week, it fell by 0.44% against the US dollar, 0.12% against the British pound, and 0.41% against the euro. With the Christmas season approaching, demand for the cedi is expected to increase, driven by stronger corporate demand and market uncertainties about global economic conditions.
Moreover, investors are factoring in the effects of rising inflation, adding to the pressure on the currency. Year-to-date, the cedi has depreciated by roughly 28% against the US dollar, currently trading at GH¢17.00 on the retail market.
Source:TheDotNews