Market uncertainties continue to weigh on the cedi in the coming days as investors look out for further news regarding foreign inflows into the economy and the much anticipated 2024 Budget.

According to some analysts, foreign exchange liquidity remains thin on the market as Ghana faces delays in receiving the expected foreign inflows, particularly the Cocoa Syndication Loan.

The delay in the foreign inflows, they said, has dampened investor confidence which impacted the cedi last week.

Additionally, the Bank of Ghana’s spot market intervention has been limited for the past two weeks, widening the demand-supply gap.  

As a result, the local unit closed weaker last week against the major trading currencies.

It depreciated 0.54 %against the US dollar, 1.35% against the pound, and 1.56% to the euro on the retail market. This took the year-to-date depreciation of the cedi to the dollar to almost 12%.

Similarly, the cedi fell 0.19% week-on-week against the dollar on the interbank market, taking its annual depreciation to about 23% to the dollar.

The local currency is presently going for about ¢12.14 to the American greenback in the retail market, while the Bank of Ghana is quoting ¢11.52 to a dollar.

Analysts had earlier said the outlook of the Ghana cedi hinges on the timing of the anticipated foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.