The Ghana cedi gained across the major trading currencies last week due to improved foreign exchange supply amid easing demand pressures.
It appreciated 1.21% against the US dollar to reduce its year-to-date loss to about 0.9% on the retail market. The local unit also advanced 0.32% and 0.93% week-on-week against the pound and the euro on the retail market.
It closed the week at GH¢12.38 to one dollar on the forex market and GH¢11.97 in the interbank market.
The easing foreign exchange demand pressures, aided by the Bank of Ghana’s $11 million spot market intervention, relieved the cedi of some depreciation pressures last week.
Analysts expect the local unit to continue to strengthen this week on the back of additional inflows from the World Bank. The World Bank approved $300 million for Development Policy Operations (DPO) for Ghana, with this release being the first of a series of three DPOs of $300 million each.
These inflows from multilateral partners from last week will continue to aid the Bank of Ghana’s intervention capacity and hold the cedi steady against the major foreign currencies.
Cedi loses 0.7% in value to dollar as of January 2024 – BoG
The Bank of Ghana stated that the cedi lost about 0.7% in value to the dollar in January 2024.
According to its January 2024 Summary of Economic and Financial Data, the cedi began 2024 better than the same period in 2023. It lost 20.6% in value to the American greenback in January 2023.