The local currency remained stable in the retail market last week but faced pressure in the interbank market.
The pressure was due to a renewed forex demand from traders and the manufacturing sector in anticipation of the upcoming festive season.
Retail rates against the euro and pound closed unchanged at mid-rates of GH¢18.03/€ and GH¢21.35/£ respectively.
However, thee cedi recorded a marginal appreciation of 0.93% against the US dollar, with the mid-rate rising to GH¢16.20/US$, up from GH¢16.35/US$ the previous week.
Analysts believe the stability of the cedi in the retail market indicates improved forex inflows and reduced speculative demand, as the market awaited the Monetary Policy Committee’s briefing on Friday, September 27, 2024.
Following a 200-basis point cut to 27% from 29% and a strong assurance from Governor Dr. Ernest Addison regarding the Bank of Ghana’s (BoG) ability to meet forex demand, the dollar-cedi rate is expected to remain fairly stable due to reduced speculations.
Additionally, the recently updated methodology for calculating the Bank of Ghana’s Foreign Exchange Market Reference Rate (MRR), which enhances foreign exchange data coverage would reduce short-term volatility, despite increasing demand ahead of the festive season.
Cedi lost 24.3% to dollar in nine months of 2024 – BoG
The Ghana cedi lost 24.3% to the US dollar on the interbank forex market as of September 2024, the Bank of Ghana has revealed in its Summary of Economic and Financial Data.
This is lower than 22.9% depreciation recorded during the same period last year.
According to the data, the cedi lost 7.7% in value to the dollar in March 2024 and depreciated by 18.6% in June 2024.
Source: Joy Business