The pressure on the Ghana cedi is expected to ease this week, following the anticipated news of the inflow of the $800 million cocoa syndication loan by next month.
Analysts believe the expected inflow of the first tranche of the cocoa syndication loan would soften the pressure on the local currency.
Again the 39th biweekly Bulk Oil Distribution Companies Foreign Exchange auction slated for this week will help reduce the demand for the dollar and cushion the cedi.
Last week, the local unit lost 1.99% to the dollar, amidst limited Bank of Ghana foreign exchange support. This took its year-to-date loss on the retail market to about 11.80%.
It also weakened by 1.02% and 0.79% to the pound and the euro respectively
The Bank of Ghana has been intervening in both the spot market and forward forex auctioning. For instance, it intervened in the market with $4.25 million last week, but that could not hold up the cedi as it registered a weekly loss.
On the international currency market, the US dollar has appreciated in recent months helped by resilience in US economic activity and safe haven demand due to the slowdown in China.
Meanwhile, some market watchers and analysts still believe the local currency will end 2023 at ¢11.60 to a dollar.
Source: Myjoyonline