The Ghana cedi recorded some gains last week against the US dollar and the other major foreign currencies after weeks of sustained depreciation.
This was buoyed by improved market liquidity.
The recovery came amidst resurfacing corporate demand pressure, largely due to seasonal demand ahead of the yuletide.
The Bank of Ghana (BoG) sold US$37 million during the 7-day forward auction while also auctioning US$20 million to the Bulk Oil Distributing companies.
Following BoG’s support, the cedi gained 0.46% week-on-week to the dollar. It ended the week trading at a mid-rate GH¢16.40 to one American greenback.
Additionally, it surged 0.47% week-on-week vs the pound and 0.56% week-on-week against the euro.
This week the US Federal Reserve is set to meet to decide the direction of the US policy rate.
As market expectations are building momentum towards a rate cut, analysts see room for the US dollar index to slide further as it lost about 100 basis points week-on-week to 101.114 points last week.
This move, coupled with the Bank of Ghana’s market intervention, should provide a cushion to the cedi’s performance this week.
Meanwhile the cedi begun this week going for GH¢16.41 to the dollar on the retail market.
It has since January 1, 2024, lost 25.81% to the American greenback.
Latest Stories
-
Epidemiologist underscores role of media on reporting health crisis
1 hour -
US sues ship firms for $100m over Baltimore bridge crash
1 hour -
48 factories constructed under 1D1F in Ashanti Region – K. T. Hammond
1 hour -
MPs’ financial sacrifice; is it worth the cost? – John Awuah quizzes
2 hours -
Majority of fisherfolks want premix fuel subsidy removed — Study
2 hours -
Ghana takes delivery of 500 metric tonnes of grains from ECOWAS
2 hours -
‘Disability is not a taboo, but a leadership disadvantage’ – Dr. Bomfeh Jnr
2 hours -
The charges against Sean ‘Diddy’ Combs explained
3 hours -
Second wave of Lebanon device explosions kills 20 and wounds 450
3 hours -
X says its return in Brazil after ban ‘inadvertant’
3 hours -
Ukraine boxing champ Oleksandr Usyk released after Poland detention
4 hours -
China aircraft lessor orders 50 737 MAX jets, in boost to Boeing
4 hours -
Google scores rare legal win as €1.49bn fine scrapped
4 hours -
Why hundreds of Samsung workers are protesting in India
5 hours -
Musk’s satellites ‘blocking’ view of the universe
5 hours