On the retail market last week, the value of the Ghana cedi relative to the US dollar increased by 1.07%.
In comparison to the pound, it increased by 3.36% week over week while falling by 1.83% against the euro.
As rumors abated, there was a slight decrease in the pressure to sell the cedi. At the close of last week’s trading, it had a year-to-date loss of almost 54% and was sold for 13.80 to the US dollar.
Additionally, it traded for 14.90 pounds and 13.20 euros, respectively.
The Bank of Ghana’s supply-side measures were strengthened by the COCOBOD syndicated loan’s first tranche payout of $790 million, which increased foreign exchange reserves.
However, the cedi continued to lose ground on the interbank market as the BoG sought to close spreads, limiting possible arbitrage opportunities in the market.
Last week, the Bank of Ghana auctioned $60 million to Bulk Oil Distribution Companies at a 30-day forward rate of 13.2474/$ versus 10.7907/$ in the previous auction, indicating persistent demand pressures outpacing supply.
As Foreign exchange liquidity improves and speculation-fueled FX demand subsides, analysts believe the cedi will see some stability this week.
Cedi gains against the dollar once more; one dollar is now worth 13.60.
Yesterday, October 31, 2022, the cedi gained value and traded at 13.60 to the US dollar.
Source: newsthemegh.com