The Ghana cedi is expected to gain more value this week, following improved foreign exchange (FX) liquidity and declining FX demand pressures.
Last week, the cedi recouped some marginal losses across the major trading currencies on the retail market as foreign exchange inflows continued to improve, while demand pressures tapered.
The local currency gained 0.78% apiece against the US dollar and the euro while remaining stable against the pound to close at a mid-rate of ¢11.61 to one US dollar on the retail market.
These gains helped the cedi trim its year-to-date losses on the retail market to 0.09% (vs a loss of 25.19% in Jul-22).
It, however, posted a mixed performance on the interbank market to the end of the week.
The market performance last week was driven by improved liquidity levels, driven by inflows from remittances, the services and telecommunication sectors.
Demand pressures subsided, easing depreciatory pressures on the local cedi.
The Central Bank provided $20 million in the 33rd Bulk Oil Distribution Companies FX Forward Auction at a forward rate of ¢11.3312/$ against ¢11.3737/$ in the previous auction, signalling declining demand levels.