The troubles with the exchange rate of the Ghana cedi continue to pile up as it falls farther behind the dollar.
The Ghana cedi lost 3.88% in value to the US dollar last week on the spot market, increasing its year-to-date depreciation to 21.20%.
The local currency also shed 2.43% against the pound and 2.87% to the euro last week.
This follows the strengthening of the US dollar and renewed local corporate foreign exchange demand.
It started the week of June 18, 2024, selling at GH¢15.70 at the Forex Bureaus.
The US Federal Reserve signalled just a single policy rate cut this year, contrary to market expectations of two cuts. This tight grip on monetary policy sent the US dollar index soaring about 100 basis points week-on-week, leaving the cedi reeling against the major trading currencies.
However, the Government of Ghana and its official creditors had agreed on a debt rework.
This is expected to pave the way for Ghana to receive a disbursement of $360 million, contingent on approval by the International Monetary Fund board at the meeting scheduled for June 28, 2024.
Analysts believe this will support foreign exchange buffers, improve FX liquidity and help stabilise the weakening cedi in the near term.
This week, however, the local unit is expected to trade sideways due to the strengthening dollar and the prevailing foreign exchange demand.
The cedi stabilised temporarily against the major foreign currencies following a slowdown in foreign exchange demand in the last two weeks.
The local unit recovered some of its losses against the dollar, pound, and euro.
It gained 1.01% againUS the US dollar, narrowing its year-to-date loss to 18.01%. Again, the cedi retrieved 2.36% week-on-week and 3.12% week-on-week of its losses against the pound and the euro, respectively.
The measures by the Bank of Ghana have helped to keep the local unit afloat.
After ironing out pertinent issues, Ghana and its official creditors concluded discussions on the $5.4 billion debt restructuring.
The cedi was finding its footing against the major trading currencies after weeks of rough patches, but the gains were short-lived.