The Ghanaian cedi has deepened its depreciation against major international currencies after mounting foreign exchange demand exerted renewed strain on the domestic market, pushing the local unit beyond projected trading thresholds in the interbank segment.
During the past two weeks, the cedi registered a year to date decline of 10.11 percent against the United States dollar in the interbank market, settling at a midpoint rate of GH¢11.63 to the dollar. The local currency also weakened to GH¢15.62 against the British pound together with GH¢13.49 against the euro, representing respective declines of 1.65 percent and 1.56 percent.
Parallel movements emerged within the retail foreign exchange market where the cedi similarly surrendered value across the major trading currencies. The local unit depreciated by 3.07 percent against the American dollar before concluding trading at GH¢12.20. Against the pound sterling, the currency eased to GH¢16.05 while the euro traded at GH¢14.10, reflecting additional declines of 1.56 percent and 1.49 percent respectively.
Market analysts indicated that the pace of the depreciation surpassed their upper band projection of GH¢11.40 against the United States currency. According to their assessment, the development followed the cautious posture adopted by the central bank regarding foreign exchange market intervention despite assurances from the International Monetary Fund concerning a possible disbursement of approximately 385 million dollars.
Analysts explained that the restrained intervention strategy could signify an intentional effort by monetary authorities to safeguard foreign reserves while awaiting firmer and more sustainable inflows into the economy, particularly as persistent demand pressures continue to influence market conditions.
Looking ahead, expectations remain largely negative for the cedi over the immediate term, with forecasts suggesting the currency could fluctuate between GH¢11.35 and GH¢11.86 against the United States dollar within the interbank market over the next fortnight. Observers believe the direction of the local unit will depend heavily on the balance between foreign exchange demand and the volume of liquidity supplied into the market.
At the start of this week, the cedi maintained a retail trading rate of GH¢12.20 against the American dollar. Despite the recent pressure, the currency’s overall year to date loss currently stands at 0.20 percent.
