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The Ghana cedi has recorded a further dip against the US dollar as mounting external shocks and rising demand for foreign exchange continue to weigh on the local currency.
Latest market checks show the cedi trading at about GH¢11.70 to one US dollar at forex bureaus, reflecting renewed pressure in the retail segment of the foreign exchange market. In the interbank market, the cedi also weakened to around GH¢11.00 to the dollar over the latest review period.
According to market analysts, the latest depreciation is being driven largely by increased demand for dollars, particularly from Bulk Oil Distribution Companies seeking foreign currency to finance imports amid elevated crude oil prices. Analysts say the situation has been worsened by global uncertainty and safe-haven demand for the dollar, which is putting pressure on emerging market currencies, including the cedi.
Despite the recent setback, the cedi has maintained some relative stability in other currency pairs. It depreciated against the euro but posted a slight gain against the British pound in the interbank market, while retail rates showed mixed performance across the major currencies.
Databank Research said while Ghana may continue to benefit from stronger gold and oil export inflows, these gains are being offset by heightened forex demand and cautious market sentiment. The firm noted that ongoing tensions in West Asia could further complicate the outlook by increasing energy market risks and sustaining pressure on foreign exchange demand.
However, the cedi still retains a year-to-date appreciation of 4.51 per cent against the dollar, suggesting that while the local currency is under short-term pressure, it remains stronger than it was at the start of the year. A live market rate check on Wednesday also placed the official market equivalent near GH¢10.90 to one US dollar, highlighting the gap between broader market pricing and forex bureau rates.
By Nana Ekuah
Loco tv