The Ghanaian cedi made gains last week against the US dollar and other major foreign currencies after a prolonged period of depreciation, thanks to improved market liquidity. This recovery came despite renewed corporate demand, driven by seasonal pressures ahead of the festive season.
The Bank of Ghana (BoG) played a pivotal role in supporting the cedi by selling US$37 million through a 7-day forward auction and an additional US$20 million to Bulk Oil Distributing companies. As a result, the cedi strengthened by 0.46% week-on-week against the dollar, closing the week at GH¢16.40.
It also posted gains of 0.47% against the British pound and 0.56% against the euro.
This week, all eyes are on the US Federal Reserve’s upcoming meeting to determine the direction of its policy rate. With market expectations leaning toward a rate cut, analysts anticipate a further decline in the US dollar index, which fell by 100 basis points last week. This, combined with continued interventions by the Bank of Ghana, is expected to support the cedi’s performance in the coming days.
As the new week begins, the cedi is trading at GH¢16.41 to the dollar on the retail market. Since the start of the year, the cedi has depreciated by 25.81% against the US dollar.
