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The Ghana cedi is anticipated to gain some strength against the US dollar this week due to the weakening of the American dollar amid potential recession fears in the USA. Last week, the cedi managed to recover some losses against major currencies, aided by a reduction in corporate demand pressures.
The Bank of Ghana’s auction of $20 million to the Bulk Oil Distributing Companies at a forward rate of GH¢15.56 to the dollar may have contributed to easing corporate demand.
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As a result, the cedi appreciated by 2.37% and 1.18% week-on-week against the pound and the euro, respectively, while maintaining a stable rate of GH¢15.88 to the US dollar.
Despite these gains, the cedi has depreciated by approximately 23.11% against the dollar this year, with the retail market rate currently at GH¢15.87.
Looking ahead, the Government of Ghana plans to pay coupons on restructured domestic bonds worth GH¢6.1 billion this month. Analysts suggest that this could trigger renewed demand for cedi-funded foreign exchange as some foreign investors might seek to repatriate their funds, potentially leading to depreciation pressures on the cedi.
