After weeks of sustained depreciation, the Ghana cedi has regained ground against major trading currencies, supported by increased liquidity measures by the Bank of Ghana.
The Central Bank injected US$209.10 million into the daily auctions and an additional US$20 million into Bulk Oil Distributing Companies.
This intervention helped the cedi strengthen by 0.80% against the US dollar, 2.12% against the British pound, and 1.96% against the euro last week.
— Bank of Ghana (@thebankofghana) November 19, 2024
At the interbank market rate, the cedi is trading at GH¢16.38 to the dollar.
Tue 19 Nov, 2024 • 10:00 AM
💵 1 USD = ₵16.38 🔽
💷 1 GBP = ₵20.76 🔽
💶 1 EUR = ₵17.41 🔽Find bank & forex bureau rates in this thread! 🧵
— CediRates (@CediRates) November 19, 2024
To further stabilize the market, the Bank of Ghana announced plans to extend its daily foreign exchange support to the interbank market.
This support is contingent on bidding banks maintaining a net short or maximum net long position of US$0.50 million at the close of the previous session.
Analysts anticipate that these measures, combined with spot market interventions, will enhance liquidity, address demand pressures, and support the cedi’s stability in the short term.
However, concerns linger over the sustainability of foreign exchange reserves, given the Central Bank’s continued liquidity support.
On the retail market, the cedi is currently trading at GH¢16.79 to the dollar and GH¢21.25 to the pound. Year-to-date, the Cedi’s depreciation against the dollar stands at -27.20%.
Despite ongoing challenges, the cedi’s recent recovery signals a positive step toward market stability.