Improving investor sentiments and the foreign exchange auctions are expected to cushion the cedi against the dollar this week.

This follows the staff-level agreement reached between the International Monetary Fund and the Ghanaian government for another $600 million in inflows into the economy by November 2023.

The funds would, however, be disbursed after the Fund’s board approval.

Analysts expect this to boost investor sentiments and consequently strengthen the cedi going forward.

This would be supported by the Bank of Ghana's plans to sell $20 million in the 37th bi-weekly Foreign Exchange auction to the Bulk Oil Distribution Companies (BDCs) this week.

Fitch Solutions in its latest Country Report on Ghana said the local currency will appreciate by about one percent to the dollar in 2024.

Last week, the cedi lost 1.74% in value to the American greenback as a result of strong corporate demand.

However, the local currency fared better against the pound as it gained 0.69% week-on-week.

At the close of the trading session on Friday, October 6, 2023, the dollar exchanged at a mid-rate of 11.82 to a dollar on the retail market.

Similarly, the cedi depreciated across the major trading currencies on the interbank market. On the interbank market one dollar is going for ¢11.23.