The Ghana cedi closed the past fortnight with a mixed performance, reflecting increased seasonal demand for foreign exchange.
In the interbank market, the cedi weakened by 0.91% against the US dollar, closing at a midrate of GH¢10.98.
It also depreciated against the pound and the euro, which fell by 1.31% and 1.08% to GH¢14.94 and GH¢12.97, respectively.
However, the retail market told a different story.
The cedi strengthened by 1.71% against the dollar, improving from GH¢11.90 to GH¢11.70.
The pound and euro also recorded modest gains, rising by 0.32% and 0.73% to GH¢15.75 and GH¢13.65, respectively.
Databank Research attributed the overall pressure on the currency to seasonal factors, noting that heightened foreign exchange demand particularly from importers restocking inventories in the first quarter could lead to mild depreciation in the coming weeks.
Overall, the cedi’s 4.0% depreciation against the dollar underscores the impact of typical seasonal market dynamics.
“We expect sustained importer demand for US dollar to continue exerting pressure on the currency in the near term. Against this backdrop, our forecast anticipates a GH¢10.95–GH¢11.10 trading range [interbank market] against the US dollar over the next two weeks, with healthy international reserves and elevated gold prices providing the Bank of Ghana sufficient capacity for targeted interventions to limit sharp depreciation”, Databank Research added.
Meanwhile, the cedi opened the week trading at GH¢11.80 to the US dollar at forex bureaus.
Despite recent pressures, the currency has recorded a year-to-date gain of 4.0% against the dollar.
