Cedi’s performance remained unchanged to dollar in first week of 2024; one dollar equals ¢12.20

The Ghana cedi traded unchanged against the US dollar last week at a mid-rate of GH¢12.18/$ on the retail market.

The same story emerged on the interbank market.

However, it shed 0.49% and 0.56% week-on-week against the pound and euro respectively.

The foreign exchange market also experienced a decrease in liquidity levels last week as the Bank of Ghana’s supply-side intervention took a pause.

But corporate demand remained elevated after the yuletide.

Ghana and its bilateral creditor committee met on Monday, January 8, 2023.

While awaiting the meeting outcome, a positive conclusion will pave the way for Ghana to receive its expected inflows of $1.15 billion from the International Monetary Fund and World Bank. This will potentially ease the pressure on the cedi.

Additionally, analysts expect the first 2024 FX auction to the Bulk Oil Distribution Companies (BDCs) scheduled for this week to cushion the Ghana cedi.

Cedi to end 2024 with 8.4% depreciation to dollar

IC Research had earlier stated that the cedi would lose about 8.4% in value to the US dollar in the retail market in 2024.

It foresees the mid-dollar rate to the cedi at ¢13.10.

The expected depreciation of the cedi will be far lower than the about 15.2% recorded last year.

“In full year 2024, we foresee the mid-US dollar Ghana cedi rate at ¢13.1/US dollar (-8.4% annual loss)”.

IC Research added that it expects improved fundamentals in 2024, as a result of expected multilateral inflows and appropriate monetary stance.