Five cedi notes
As corporate demand for foreign currency surged, the Ghana cedi further depreciated against the US dollar and other major foreign currencies, reaching a year-to-date loss of 13.35% against the American greenback as of April 29, 2024.
According to a Joy Business report, most forex bureaus are quoting the local currency at an average rate of GH¢14.10 to a dollar. Additionally, the cedi experienced significant declines against the euro and the pound.
Despite the Central Bank's efforts to stabilize the currency by selling $13 million in the spot market last week, the cedi continued to lose ground. It ended the week with a 0.90% decrease against the dollar on the retail market. Similarly, it trimmed 1.32% and 1.54% against the pound and the euro, respectively.
On the interbank market, the Ghana cedi surrendered gains of 1.10% against the dollar.
This week, the Bank of Ghana plans to sell $20 million to Bulk Oil Distribution Companies (BDCs) in its 51st auction. Analysts anticipate that this auction will help alleviate some of the forex demand pressures on the market.