Cedi and dollar notes
The cedi continues to face challenges, with its depreciation against the US dollar and other major foreign currencies showing no signs of abating.
According to a Joy Business report, the cedi's year-to-date depreciation against the US dollar stands at 15.16%, positioning it as one of Africa's worst-performing currencies in 2024.
Forex bureaus are currently selling one US dollar for an average of GH¢14.40.
Analysts foresee a continued weakening trend for the local currency in the near term, citing significant disparities in foreign exchange demand and supply.
However, they anticipate improved liquidity conditions by the end of the second quarter of 2024 following the International Monetary Fund's (IMF) approval of Ghana’s program's second review. This approval is expected to lead to a tranche disbursement of US$360 million under the IMF program.
Last week, corporate demand, particularly from the energy and manufacturing sectors, drove the cedi's downward trajectory.
Despite the Bank of Ghana selling US$22 million on the spot market and auctioning US$20 million to Bulk Oil Distribution Companies (BDCs), the cedi experienced losses as demand outstripped foreign exchange liquidity.
On the retail market, the Ghana cedi concluded the week with a significant week-on-week loss of 2.97% against the US dollar, adding to the year-to-date loss of 14.11% by the end of April 2024.
Against the pound and euro, the cedi also recorded losses of 3.83% and 3.32% week-on-week, respectively, contributing to year-to-date losses of 17.63% and 12.11%.