Market sentiments are changing in the FX market as a dollar trades at GH¢16.48
Market sentiments are expected to improve in the coming weeks, which bodes well for the Ghana cedi’s near-term prospects.
This improvement is driven by an anticipated $250 million facility from the World Bank under the Ghana Energy Sector Recovery Programme, aimed at addressing current challenges in the energy sector.
The funding will help reduce energy sector debts and ensure a stable energy supply nationwide, supporting economic growth.
Analysts believe this infusion will enhance the country’s foreign reserves, boosting foreign exchange liquidity.
Last week, the cedi continued to depreciate against the dollar and the pound, but at a slower pace, as demand pressures began to ease.
The cedi is currently trading at GH¢16.48 to the dollar, reflecting a 1.21% decline week-on-week, a slight improvement from the 1.84% drop recorded the previous week.
The Bank of Ghana interbank FX rate stands at GH¢15.728 to a dollar as of September 24, 2024.
Wed 25 Sep, 2024 • 10:00 AM
💵 1 USD = ₵16.18
💷 1 GBP = ₵21.62
💶 1 EUR = ₵18.08— CediRates (@CediRates) September 25, 2024
Against the British pound, the cedi weakened by 0.71% week-on-week, a reduction from the 1.43% depreciation seen in the prior week.
However, there was a positive note as the local currency managed to recover from a 0.42% loss against the euro in the retail market.
Since January 1, 2024, the cedi has faced significant challenges, depreciating approximately 25.61% against the US dollar.
This trend underscores the ongoing volatility in the forex market and the pressures facing the cedi, but recent fluctuations suggest a potential stabilization as market conditions evolve.