After exhibiting a stable run the previous week, the Ghana cedi retreated to losses last week.

This was on the back of resurfacing corporate demand pressures.

The local unit shed 1.48% week-on-week against the US dollar, ending trade at a bid to offer rate of GH¢15.75/16.00 against the greenback on the retail market.

Similarly, the cedi shed 2.80% and 2.18% week-on-week vs the British pound and the euro on the retail market.

Ghana’s refined oil import increased to US$428.3 million in Jun 2024, from US$422.6 million in May 2024, as demand pressures from oil importers soared.

The Central Bank sold US$40 million to oil importers through the Bulk Oil Distributors Foreign Exchange (FX) auction.

However, there is continued persistent demand from the oil importer, contributing to the 4.46% month-on-month depreciation of the cedi against the US dollar in Jun 2024.

Analysts deem the higher oil import bill and the resultant increase in FX demand as a downside risk to the net foreign reserves with near-term pressure on the cedi.

As a result, they expect the local unit to remain on a weakening path this week as corporate demand pressures ramp up.

Meanwhile, the cedi is going for GH¢15.88 to the American greenback on the retail market.

Cedi depreciates 19.5% against dollar as of July 2024 – BoG

According to the Bank of Ghana, the Ghana cedi depreciated by about 19.6% to the US dollar on the interbank forex market as of July 2024.

This is lower than the about 21% loss in value to the American greenback on the retail market.

According to the Central Bank’s July 2024 Summary of Financial and Economic Data, the cedi lost 7.7% in value to the dollar in March 2024 and depreciated by 10.5% against the dollar in April 2024. Again, it lost 15.9% and 18.6% in value to the world’s most important currency in June 2024 and July 2024.