Cedi will be impacted by rising domestic demand and a strengthening dollar globally.
This week, the cedi is anticipated to be negatively impacted by rising domestic demand and a global strengthening of the US dollar. In fact, some analysts anticipate a little depreciation of the local currency this week.
Due to the Fed's intention to maintain higher U.S. policy rates for a longer term, the dollar gained traction internationally.
The local currency suffered a slight loss last week in comparison to the US dollar.
It fell as demand pressures on the Bank of Ghana's support for foreign exchange continued to mount.
The Bulk Oil Distributing Companies' biweekly foreign exchange auction was organised by the Central Bank, which contributed $20 million.
Furthermore, the Central Bank participated in the spot market by supplying around $2 million in assistance to restrain demand. These foreign exchange clauses, however, were unable to support the cedi against the dollar.
Despite this, the local currency closed the retail market 0.69% stronger versus the pound and remained unchanged against the euro.
Analysts predict that the cedi will be protected in the near term by the disbursement of the cocoa syndication loan in December 2023 and potential inflows from the Economic Credit Facility ($600 million) with the International Monetary Fund.
The cedi has fallen against the dollar by roughly 11.4% in the retail market and by about 22% in the interbank market so far this year.
Source: Joy Business
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