The Cedi has weakened against the US dollar, reaching ¢12.10 on the retail market as of Friday, October 20, 2023.
This is contrary to the projections of several analysts and research institutions that the cedi would average ¢11.60 to the dollar by the end of the year.
According to Joy Business, some forex bureaus have reported a high demand for the dollar ahead of the Christmas season, which is two months away.
The increased demand for foreign exchange from local businesses and importers is also a factor that puts pressure on the cedi.
However, the situation may improve in November 2023, when the International Monetary Fund is expected to disburse $600 million to Ghana.
The Bank of Ghana intervened in the forex market last week by selling $20 million to Bulk Oil Distribution Companies and $2.0 million for spot market operations, but these interventions were deemed inadequate by some analysts.
The cedi depreciated by 0.17% against the dollar, 0.86% against the pound and 0.60% against the euro on the retail market last week.
On the interbank market, the cedi had a mixed performance. It lost 0.73% to the dollar, gained 0.06% to the euro and remained unchanged to the pound.
The cedi’s depreciation may accelerate in the coming weeks due to the persistent foreign exchange demand.
