The Ghana cedi clawed back further gains as its resurgence against the dollar continued abated.

The local currency gained 3.8% week-on-week to the US dollar last week, narrowing its year-to-date loss to 22%.

It also appreciated 4.36% versus the pound and 3.18% against the euro last week.

At the close of the week's trading, the cedi quoted at a mid-rate of GH¢15.65 to a dollar on the retail market.  It also begun the week at GH¢15.65 to a dollar.

Again, it went for GH¢14.73 to a dollar on the interbank market.

The boost in the local currency performance was supported by slowing seasonal demand and the Bank of Ghana’s injection of US$237.40 million into the market.

Following the rapid growth in the economy by 7.3% in the second quarter of 2024 and the recent peaceful elections, analysts expect a sustained increase in foreign investor confidence in Ghana.

This will enhance Foreign Direct Investment inflows, bolster Ghana’s foreign exchange reserves and stabilize the cedi in the near term.

Analysts expect the local currency to remain strong on BoG’s market support and improving market sentiments this week.