The Ghana cedi is expected to gain some respite against the US dollar this week following the weakening American greenback as there is a possible recession in the USA.
Last week, the local unit clawed back some losses on the major trading currencies due to moderating corporate demand pressures.
The Bank of Ghana auctioned $20 million to the Bulk Oil Distributing Companies at a forward rate of GH¢15.56 to a dollar.
This may have helped soften corporate demand.
Consequently, the Ghana cedi gained 2.37% and 1.18% week-on-week vs the pound and the euro, while remaining stable at a mid-rate of GH¢15.88 to the American greenback.
So far this year, the cedi has lost about 23.11% to the US dollar. It is going for GH¢15.87 to the American greenback on the retail market.
Meanwhile, the Government of Ghana intends to pay coupons on the restructured domestic bonds worth GH¢6.1 billion this month.
Analysts believe this development could reignite cedi-funded foreign exchange demand as some foreign investors may seek to repatriate funds.
This and the prevailing corporate demand pressure may pose some depreciation risks on the cedi.