The Ghana cedi strengthened across the major currencies last week amid thin forex liquidity as yuletide demand appeared to have waned.
The Bank of Ghana sold US$20 million to Bulk Oil Distributors at a forward rate of GH¢14.7690/$ compared to GH¢14.8133/$ in the previous auction, indicating slowing demand pressures.
Without the Bank of Ghana’s daily forward sales, the local unit gained 1.44% week-on-week versus the US dollar to GH¢15.58/$ on the retail market.
It also appreciated by 2.86% against the pound and 3.70% to the euro respectively on the retail market.
So far this year, the local currency has lost about 21.58% in value to the American greenback.
It began today going for GH¢15.75 against the US dollar. The Bank of Ghana also quoted GH¢14.71 to one dollar on the interbank market.
Last week, the Central Bank released the foreign exchange auction calendar for the first quarter of 2025, confirming a consistent allocation of US$20 million per auction for the initial six auctions.
Given the easing demand, ongoing seasonal liquidity, and the anticipated total auction amount of US$ 120 million for the first quarter, analysts believe there is potential for the cedi to remain well-supported in the coming days.
Consequently, the local unit is expected to strengthen this week.
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