The Ghana cedi regained 3.8% week-on-week to the US dollar last week, narrowing its year-to-date loss to 22%.
The local unit also clawed back 4.36% versus the pound and 3.18% against the euro last week.
At the close of the week’s trading, the cedi quoted at a mid-rate of GH¢15.65 to a dollar.
It however went for GH¢1473 to a dollar on the interbank market.
Slowing seasonal demand and the Bank of Ghana’s injection of US$237.40 million into the market supported the boost in the local currency’s performance.
Following the rapid growth in the economy by 7.3% in the second quarter of 2024 and the recent peaceful elections, analysts expect a sustained increase in foreign investor confidence in Ghana.
This will enhance Foreign Direct Investment inflows, bolster Ghana’s foreign exchange reserves, and stabilize the cedi soon.
This week, analysts expect the local currency to remain strong on BoG’s market support and improving market sentiments
Source: Business Ana