The Ghanaian cedi is anticipated to find some relief this week as the country expects the inflow of an $800 million cocoa syndication loan next month.
This significant financial injection is predicted to ease the mounting pressure on the local currency, according to analysts.
The initial tranche of the cocoa syndication loan is set to play a pivotal role in softening the cedi’s struggles and bolstering its stability.
Simultaneously, the 39th biweekly Bulk Oil Distribution Companies Foreign Exchange auction, scheduled for this week, is anticipated to further alleviate the demand for the US dollar, subsequently cushioning the cedi.
Over the past week, the cedi faced a 1.99% depreciation against the US dollar, with limited support from the Bank of Ghana in terms of foreign exchange interventions.
This loss has pushed its year-to-date decline on the retail market to approximately 11.80%. The currency also weakened by 1.02% and 0.79% against the British pound and the euro, respectively.
The Bank of Ghana has actively intervened in both the spot market and forward forex auctioning. Despite injecting $4.25 million into the market last week, the cedi still registered a weekly loss.
In the global currency market, the US dollar has strengthened in recent months, buoyed by the resilience of the US economy and safe haven demand due to China’s economic slowdown.
Nevertheless, some market observers and analysts maintain the belief that the Ghanaian cedi will end 2023 at a rate of ¢11.60 to the US dollar.
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