The depreciation of the Ghanaian cedi is anticipated to slow down this week as demand pressure subsides, following significant interventions by the Bank of Ghana in the forex market.
Last week, the Central Bank injected approximately $28 million into the market through a 7-day forward auction on Wednesday, August 28, 2024, and an additional $20 million to the Bulk Oil Distributing Companies. These measures helped to meet the strong demand for U.S. dollars, stabilizing the cedi for the remainder of the week as demand pressures diminished.
Despite these efforts, the cedi still recorded a depreciation of 1.84% against the U.S. dollar, 1.43% against the pound sterling, and 0.42% against the euro on the retail market last week. By the end of the week, the dollar was trading at GH¢16.28 on the retail market. Since the beginning of the year, the cedi has lost approximately 24% of its value against the U.S. dollar.
In a related development, Deloitte West Africa has noted that Ghana’s recent debt restructuring deal with external creditors is expected to positively influence the local currency. This, in turn, is likely to have a favorable impact on imported inflation.
