The cedi is expected to remain relatively stable on the forex market this week.
Analysts believe a positive Mid-Year Budget Review this month and a successful first evaluation of the International Monetary Fund programme could set the tone for the local currency’s trajectory in the second half of 2023.
The local currency lost marginal grounds against the dollar and the other major foreign currencies last week. It lost 0.21% week-on-week in value to the American greenback, depreciated 0.33% and 1.57% to the pound and euro, respectively.
This was a result of poor forex liquidity and increased demand pressures. The Bank of Ghana provided no support on the spot market.
However, the expected $20 million in bi-weekly forex support to Bulk Oil Distributors will cushion the cedi against volatility.
Together with a successful first review of the IMF programme and a promising Mid-Year Budget Review, investor confidence is expected to be boosted, all things being equal.
This will help reduce the pressure on the dollar and the other major foreign currencies.
The cedi is presently going for about ¢11.75 to one dollar in the retail market, whilst the Bank of Ghana quotes one dollar for ¢11.00.