Audio By Carbonatix
The Ghana cedi extended its year-to-date loss to the dollar to 10.11% in the interbank market due to demand pressures.
It closed at interbank mid-rates of GH¢11.63 to a dollar, GH¢15.62 against the pound and GH¢13.49 to the euro over a two-week period. This reflected losses of 3.01%, 1.65%, and 1.56%, respectively.
Similar trends were observed in the retail market, where the currency weakened by 3.07% against the American greenback, 1.56% against the pound and 1.49% against the euro, closing at mid-rates of GH¢12.20 against the dollar, GH¢16.05 to the pound and GH¢14.10 to the euro, respectively.
“We note that the cedi’s depreciation exceeded our upper-band forecast of GH¢11.40 against the US dollar, as the central bank remained cautious about forex intermediation despite assurances from the International Monetary Fund of a likely US$385 million disbursement,” Database Research noted.
It pointed out that this cautious posture may reflect a deliberate effort to preserve reserves while awaiting clearer and more sustainable inflow visibility, particularly amid lingering demand pressures.
“Looking ahead, we expect the cedi to trade largely on bearish expectations within a range of GH¢11.35 - 11.86/US dollar over the next two weeks [in the interbank market], with the path shaped by the balance between FX demand and the magnitude of supply into the market," it further stated.
Meanwhile, the cedi began this week going for GH¢12.20 to the American greenback in the retail market.
Its year-to-date loss now stands at 0.20%.
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