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Demand pressure on cedi eases; $1 equals ₵16.35

Source The Ghana Report

The pressure on the Ghana cedi eased last week and the currency continued to experience only a slight depreciation.

The cedi weakened by 1.21% against the dollar in the retail market, an improvement from the 1.84% drop observed the previous week.

Against the British pound, the cedi depreciated by 0.71%.

However, it recovered from a 0.42% decline against the Euro during the same period.

Currently, one US dollar is valued at GH₵16.35 on the retail market, a reduction from the GH₵16.75.

On Year-to-date, the cedi has depreciated by 26.10% against the dollar, making it one of the poorest-performing currencies in Africa for 2024.

On cedi outlook in the near term, the Parliament of Ghana has approved a significant $250 million loan from the World Bank as part of the Ghana Energy Sector Recovery Programme.

This funding is designed to address the ongoing challenges within the country’s energy sector.

The loan aims to tackle substantial energy sector debts and ensure a reliable and consistent energy supply nationwide, which is crucial for economic growth and stability.

Analysts are optimistic that the release of these funds by the Bank of Ghana could positively influence market sentiment shortly.

This development is expected to benefit the local currency, offering a more favourable outlook in the short term.

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