Cedi lost 3.14% value to dollar last week; near-term outlook uncertain

The Ghana cedi lost about 3.14% value to the US dollar last week as the renewed depreciatory pressures set in.

It started the week at about ¢12.50 to the American greenback, but ended the week at about ¢12.70.

The local currency also declined by 1.97% to the pound and 1.49% to the euro respectively in the retail market.

Although the Bank of Ghana continued to intervene in the market, it could only sell $5 million on the spot market.

This did not ease the demand pressures.

In the forward market, the regulator received and allocated $30 million at a 30-day forward rate of ¢11.9095/US$ for the Bulk Oil importers (BDCs) compared to the rate of ¢10.9875/US$ in the previous auction, signalling intense demand pressures.

Analysts therefore expect the uncertainties surrounding the settlement and trading of the new bonds to drive market sentiments, impacting the near-term outlook on the cedi.

The cedi is presently being at ¢12.90 to one US dollar in the retail or forex market.

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