The Ghana cedi is expected to remain stable against the US dollar this week as foreign exchange (FX) liquidity improves and demand slows.
This follows the inflow of $360 million from the International Monetary Fund which has boosted FX liquidity and slowed corporate demand.
Last week, the local currency held steady against the American greenback following improved market sentiments as foreign exchange demand eased.
This was due to the IMF board’s approval of the third tranche of $360 million and subsequent release of funds after the second review of Ghana’s 36-month Extended Credit Facility.
Again, the Bank of Ghana sold about $19 million on the spot market to increase foreign exchange liquidity.
The local unit also shed 0.30% week-on-week and 0.25% week-on-week versus the pound and euro subsequent to the successful UK election.
The cedi has been on a rocky ride in the past weeks and months, grappling with the relentless corporate demand and its resultant depreciation.
As a result, it ended the first half of 2024 losing 22.45% vs the dollar on the retail market.
Presently, one dollar is going for GH¢15.95 at the forex bureaus. The local currency has so far depreciated by 22.58% to the dollar since January 1, 2024.
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