Demand for dollars continued to ease as the Bank of Ghana sold only $9.2 million on the spot market last week (January 30 – February 3, 2023).
Analysts and Market watchers believe the progress made by government on the Domestic Debt Exchange Programme (DDEP) will positively improve investor confidence in the economy, boosting the outlook of the cedi.
The deadline for the programme is expected to end today February 7, 2023. All things being equal, the attainment of the 80% subscription target will enhance the outlook of the cedi for the rest of the year.
The local currency gained across the major trading currencies last week (January 30 – February 3, 2023) as many businesses and individuals reduce their demand for the American currency.
The cedi gained 3.1% week-on-week against the US dollar, 1.64% vs GBP and 2.26% to the euro on the forex market last week. A week before, it improved in value by about 0.78% against the American ‘greenback’.
The local currency depreciated by about 38.8% to the American greenback in 2022, according to Bloomberg.
It began the year going for ¢11.60.
However, it lost about 19% in value to the US dollar, the Bank of Ghana stated in its January 2023 Summary of Economic and Financial Data.