Despite increased demand challenges, Cedi has a promising start to the week: GH¢17 equals one dollar

After the Bank of Ghana sold enough dollars yesterday, November 11, 2024, to strengthen the local currency, the Ghana cedi started the week off on a positive note.

On the interbank market, the local currency increased by 0.2% to sell at GH¢16.33 to one US dollar. On the retail market, however, it is selling for GH¢17.00 to the dollar. The Central Bank conducted focused interventions last week as part of aggressive efforts to stabilise the market.

The two-day and seven-day foreign exchange auctions that were part of these interventions sold over US$214.04 million, the most in a single week this year.

The cedi’s devaluation was tempered as a result of the intervention’s assistance in alleviating part of the demand backlog. The cedi did, however, slightly weaken in value relative to all of the main international currencies. Each week, it dropped 0.41% against the euro, 0.12% against the pound, and 0.44% against the US dollar.

The local unit will continue to face heightened demand challenges as Christmas draws near. Increased business demand and the general market attitude towards the global economy will be the main drivers of this.

Investors are once more factoring in uncertainty about the escalating inflationary pressures. The local currency has lost almost 28% against the US dollar so far this year.

On the retail market right now, it costs between GH¢17.00 and $1 USD.