Cedi keeps falling; depreciates by 13.35% so far

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The Ghanaian cedi has continued its downward slide against major foreign currencies, with corporate demand driving its depreciation.

Year-to-date, the cedi has lost 13.35% of its value against the US dollar, now averaging GH¢14.10 to a dollar across forex bureaus. Additionally, it has weakened significantly against the euro and the pound.

Last week, the Central Bank intervened by selling $13 million in the spot market, but this failed to bolster the cedi, ending the week by 0.90% against the dollar on the retail market.

Similarly, it trimmed 1.32% and 1.54% against the pound and the euro, respectively.

In the interbank market, the cedi surrendered gains, dropping by 1.10% against the dollar.

The Bank of Ghana’s forthcoming auction, where $20 million will be sold to Bulk Oil Distribution Companies (BDCs), is anticipated to alleviate some forex demand.

However, analysts caution that prevailing corporate pressures are likely to continue weakening the local currency.

 

 

Source: ClassFMonline.com

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