The Ghana cedi strengthened in value against the US dollar last week as demand pressures for the American greenback ease.
The local currency gained 0.21% against the dollar despite an injection of $1.3 million in the spot market by the Bank of Ghana. This consequently narrowed its year-to-date loss to a little above 14%.
It however lost marginally to the pound and the euro. The local unit lost 0.33% week-on-week against the pound and 0.79% week-on-week against the euro.
There is an anticipated external debt restructuring before the first IMF review in September 2023, whilst the Bank of Ghana holds its last auction for Bulk Oil Distributors for the second quarter today June 27, 2023. All these are expected to contribute to the performance of the cedi in the near term.
Despite its strong performance last week, analysts expect the local currency to exhibit a mixed performance this week.
The cedi is presently going for ¢11.70 to one US dollar at the forex bureaus, whilst the Bank of Ghana quotes one dollar for ¢10.99.