The Ghana cedi lost 3.88% in value to the US dollar last week on the spot market increasing its year-to-date depreciation to 21.20%.
This follows the strengthening of the US dollar and renewed local corporate foreign exchange demand.
It however started the week, June 18, 2024, unchanged selling at GH¢15.70 at the forex bureaus.
The US Federal Reserve signalled just a single policy rate cut this year, contrary to market expectations of two cuts. This tight grip on monetary policy sent the American greenback index soaring about 100 basis points week-on-week, leaving the cedi reeling against the major trading currencies.
The local currency also shed 2.43% against the pound and 2.87% to the euro last week.
However, the Government of Ghana and its official creditors had agreed on a debt rework.
This is expected to pave the way for Ghana to receive a disbursement of $360 million, contingent on approval by the International Monetary Fund board at the meeting scheduled for June 28, 2024.
Analysts believe this will support foreign exchange buffers, improve FX liquidity and help stabilise the weakening cedi in the near term.
This week, however, the local unit is expected to trade sideways due to the strengthening dollar and the prevailing foreign exchange demand.