By: Benjamin Nii Nai Anyetei
The Ghana cedi recorded mixed performance against the US dollar last week, appreciating in the retail market but weakening on the interbank market.
Data from the forex market showed that in the retail segment, the local currency gained 1.06 percent, trading between GH¢11.40 and GH¢11.90 to the dollar. This modest advance pushed its year-to-date gain to 31.85 percent, cementing its position among the world’s top-performing currencies.
However, on the interbank market, the cedi depreciated by 1.41 percent, closing at GH¢10.65 to the US dollar. Analysts linked the slip to renewed corporate demand pressures and limited foreign exchange inflows, which weighed on the interbank rate despite the retail market gains.
The cedi also appreciated by 0.64 percent against the British pound to GH¢15.65/GBP but lost 0.73 percent against the euro, settling at GH¢13.70/EUR.
According to Databank Research, the dual performance underscores the currency’s fragile stability. “In line with expectations, the cedi firmed modestly from GH¢10.80/USD to GH¢10.65/USD on the interbank market, but demand pressures and thin FX support capped further gains,” it said.
Looking ahead, market watchers expect near-term pressures to persist as global investors rebalance toward US dollar assets. Despite this, the cedi began this week’s trading on August 18, 2024, unchanged at GH¢11.90 to the dollar in the retail market.
