Demand for US dollar continued to outstrip supply despite a slowing inflation.
This caused the cedi to fall to levels seen in the second quarter of 2023.
The Central Bank provided US$20 million in the 36th bi-weekly foreign exchange to the Bulk Oil Distribution Companies, but this was insufficient to bring the rising corporate demand to heel.
As a result, the local currency closed 0.43% week-on-week weaker against the American greenback at a mid-rate of ¢11.59/$00.
Conversely, the local currency gained 0.17% to the pound but remained stable against the Euro.
So far this year, the cedi has lost about 11.6% to the dollar in the retail market and about 22% to the American greenback on the retail market.
The Ghana Statistical Service (GSS) reported a significant drop in inflation for August 23 to 40.1%. The cooling print was attributed to decreased food inflation, which dropped from 55% to 51.9%. Additionally, Fitch Solutions has revised its forecast for the Ghana cedi for the end of the year 2023, predicting it will reach ¢11.40/$ instead of the initial forecast of ¢12.40/$.
This week, analysts anticipate the cedi to move gently as risk-off investor sentiment cools off.
Source: Business Analyst
