The Ghana cedi has lost about 4.44% in value to the US dollar since the beginning of the year.
Last week, the local currency weakened 1.37% to the American greenback week-on-week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.
Despite the Central Bank selling $18.5 million on the spot market, it could not keep the cedi afloat as it weakened to close at a mid-rate of GH¢12.75 to the dollar. Similarly, the cedi shed 1.10% and 1.47% to the pound and the euro, respectively, on the retail market.
The government during the week paid off coupon obligations on the new bonds, releasing a total of about GH¢5.1 billion to investors.
Nonetheless, the pressure on the cedi continued on Monday, February 26, 2024, with the local currency selling at GH12.85
Analysts believe the improved liquidity of the local unit on the market supported the cedi funding towards foreign exchange demand.
Additionally, investors are pricing in uncertainties regarding rising inflationary pressures.
The analysts expect a similar narrative at the close of this week as the cedi continues to weaken across the major trading currencies.
Cedi lost 0.7% in value to dollar in January 2024 – BoG
According to the Bank of Ghana, the cedi lost about 0.7% in value to the dollar in January 2024.
It January 2024 Summary of Economic and Financial Data revealed that the cedi began 2024 better than the same period in 2023. It lost 20.6% in value to the American greenback in January 2023.
However, the situation has worsen in February 2024.