Over the past two weeks,the Ghanaian cedi has come under pressure, slipping slightly as demand for foreign exchange increases against a backdrop of global economic challenges.
The local currency recorded modest losses in both the interbank and retail foreign exchange markets, influenced by rising domestic demand for dollars and external factors such as higher commodity prices.
In the interbank market, the cedi declined by 1.55% against the US dollar, 1.66% against the British pound, and 0.90% against the euro. It closed at average rates of GH¢10.94 to the dollar, GH¢14.62 to the pound, and GH¢12.61 to the euro.
A similar pattern was observed in the retail market. The cedi fell by 0.43% against the dollar to GH¢11.60 and dropped 1.62% against the pound to GH¢15.40, while remaining relatively stable against the euro at GH¢13.45.
Market analysts attribute the currency’s recent performance to increased demand for foreign exchange from importers, high liquidity levels in the financial system, and rising global oil prices, all of which are pushing up the country’s import costs.
According to Databank Research, external conditions continue to play a significant role. The firm noted that higher crude oil prices present risks to Ghana’s trade balance and inflation outlook.
It also pointed out that although strong gold prices had previously supported the cedi, a recent decline, linked to easing geopolitical tensions, could weaken this support. Overall, analysts expect the cedi to maintain a mild depreciation trend in the near term, with stability depending on sustained foreign exchange inflows and global developments.
At the start of this week, the cedi was trading at around GH¢11.70 to the dollar in the retail market. Despite the recent dip, the currency has posted a year-to-date gain of 4.96%.
Journalist
Source: Wesleyannews.com
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