After weeks of sustained depreciation, the Ghana cedi staged a recovery across the major trading currencies, buoyed by improved market liquidity from the Bank of Ghana.

The Central Bank sold US$209.10 million during the daily auctions while also auctioning US$20 million to the Bulk Oil Distributing companies.

Following the Bank of Ghana’s support, the cedi gained 0.80% week-on-week vs the US dollar, 2.12% vs pound and 1.96% against the euro last week.

At the close of the week’s trading, the local unit quoted at a mid-rate of GH¢16.79 to a dollar.

Last week, the Bank of Ghana announced plans to extend its daily foreign exchange support to the interbank foreign exchange market, with the condition that bidding banks end the previous session with a net short or maximum net long position of US$0.50 million.

Analysts expect this initiative, along with ongoing spot market interventions, to improve market liquidity, meet market demand, and help support cedi’s stability this week.

However, there are risk-off sentiments as concerns are rising on the sustainability of the foreign exchange reserves in the near term, especially given the Bank of Ghana’s continued liquidity support.

Meanwhil,e the cedi started yesterday, gaining marguianlly against the dollar and the other major foreign currencies.

It is going for GH¢16.79 against the dollar and GH¢21.25 to a pound on the retail market.

The year-to-date performance of the cedis also stands -27.20% to the dollar.