Cedi anticipated to maintain stability against hard currencies as BoG boosts foreign exchange support
The cedi is projected to sustain its stability against the US dollar and other major currencies in the upcoming week, aided by improved foreign exchange support from the Bank of Ghana.
Last week, the cedi displayed gains across various retail market trading currencies.
The cedi experienced a 0.64% week-on-week appreciation, concluding the week’s trading at a retail market mid-rate of ¢11.68/$.
Furthermore, it exhibited a 0.67% increase against the pound and an impressive 1.60% gain against the euro, despite the European Central Bank’s ongoing policy rate tightening.
To reinforce liquidity in the foreign exchange market, the Central Bank injected approximately $25 million last week.
The cedi has notably benefited from the International Monetary Fund’s programme, fostering heightened investor confidence.
Comparing performance to the same period last year, the local currency exhibited a stronger performance in the first half of this year.
However, Bloomberg data indicates that the cedi depreciated by approximately -11.21% against the US dollar, categorizing it among African currencies with ‘Worst Spot’ Returns.
