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The depreciation of the Ghanaian cedi is expected to decelerate this week as demand pressures begin to ease.
This follows significant intervention by the Bank of Ghana in the foreign exchange market last week.
On Wednesday, August 28, 2024, the Central Bank injected approximately $28 million into the market through a 7-day forward auction, along with an additional $20 million to the Bulk Oil Distributing Companies. These measures were instrumental in addressing the heightened demand for the U.S. dollar.
As a result, the cedi remained relatively stable for the remainder of the week, with demand pressures appearing to subside.
However, the local currency still recorded a depreciation of 1.84% against the U.S. dollar, 1.43% against the British pound, and 0.42% against the euro on the retail market last week.
By the close of the week, the U.S. 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 related news, Deloitte West Africa has noted that Ghana’s recent debt restructuring deal with external creditors is likely to positively influence the cedi’s performance, which could also help curb imported inflation.
Source: locotvgh.com