Cedi faces continued pressure amidst persistent dollar demand as dollar sells for GHS 12.57 on retail market
The cedi remains under strain this week, as persistent demand for the US dollar continues to exert downward pressure on its performance. Last week saw a slight depreciation in the local currency, bringing its year-to-date losses to approximately 3%.
The sustained elevated demand for the dollar hindered the cedi’s progress across major trading currencies throughout the week, with the Central Bank’s injection of $3 million failing to significantly buoy the local currency. As a result, the cedi weakened by 0.60% against the American greenback, closing at GH¢12.57 in the retail market by week’s end.
While the cedi experienced marginal fluctuations against other key currencies such as the pound and euro, the overall trend suggests a challenging environment for the local currency.
Global creditors and rating agencies convened in discussions last week, focusing on the impact of rating actions on debt-distressed nations like Ghana. It was emphasized that despite successful debt restructuring efforts, rating agencies’ actions have further increased borrowing costs for these countries.
Analysts posit that a positive reassessment of the rating methodologies for such debt-distressed nations could potentially bolster investor confidence in Ghana. However, despite the anticipation of such developments, the cedi is expected to remain under pressure in the near term.
