The Ghana cedi gained 0.63% week-on-week against the US dollar last week as demand pressures waned.
The local currency closed the week at GH₵15.96 to one US dollar, narrowing its year-to-date loss to 1.74%.
Foreign exchange demand pressures appeared subdued last week, as the market remained mostly liquid. The Bank of Ghana offered US$190 million through its daily auctions, but only US$84.80 million was absorbed by market participants, indicating an acceptance ratio of 44.6%.
Additionally, US$65 million traded on the interbank market, boosting liquidity.
This helped the Ghana cedi strengthen by 6.6% against the US dollar, closing as the best-performing currency on the interbank market among the basket of 15 Sub-Saharan currencies.
It began this week unchanged against the American greenback.
Outlook for this week: Analysts expect the sustained moderation in foreign exchange demand pressures, coupled with timely central bank interventions, to further improve market liquidity and provide a respite to the Ghana cedi.