The Ghanaian cedi saw a modest appreciation of 0.63% against the US dollar last week, reflecting a decline in demand pressures. By the close of the trading week, the cedi was valued at GH¢15.96 to one dollar, slightly reducing its year-to-date depreciation to 1.74%.
Market liquidity remained robust throughout the week, as foreign exchange demand pressures eased significantly. The Bank of Ghana played a key role, offering US$190 million during its daily forex auctions. However, only US$84.8 million—representing an acceptance rate of 44.6%—was taken up by market participants, signaling lower-than-expected demand.
In addition to the central bank’s interventions, the interbank market contributed to improved liquidity, with US$65 million traded. These combined efforts helped the cedi emerge as the strongest-performing currency among a basket of 15 Sub-Saharan African currencies, appreciating by 6.6% on the interbank market.
As the new week commenced, the cedi held steady against the US dollar, showing resilience amid a relatively calm forex market.
Looking ahead, analysts are optimistic that the cedi’s performance could continue to improve. The sustained moderation in foreign exchange demand pressures, coupled with timely interventions by the Bank of Ghana, is expected to enhance market liquidity further and stabilize the local currency.
Story by: Mercy Addai Turkson #ahotoronline.com
