The Ghana cedi held firm against the US dollar last week as a result of foreign exchange support and subdued corporate demand.
The local currency appreciated by 0.49% week-on-week against the US dollar in the interbank market, closing at a midrate of GH¢10.30.
In the retail segment, the American remained broadly stable at GH¢12.55. The year-to-date appreciation stood at 23.71%.
However, the cedi depreciated by 0.90% against the pound to GH¢16.65 and by 0.70% against the euro to GH¢14.30.
“In line with our expectations, improved FX [foreign exchange] support by the Bank of Ghana, alongside subdued market activity, underpinned the cedi’s relative stability last week”, Databank Research said.
It pointed out that although speculative pressures remained largely contained following the recent Fitch upgrade, rising geopolitical tensions in the Middle East may pose upside risks to forward rates in Bulk Oil Distributing Companies (BDCs) auctions amid elevated crude prices and potential supply disruptions.
In the week ahead, the Bank of Ghana is expected to prioritise corporate FX demand over banks’ net open positions, recalibrating interventions to anchor market expectations and sustain cedi stability.
Meanwhile, the cedi started the week unchanged to the dollar, going for GH¢10.25 at the forex bureaus.
Its year-to-date performance also remained at an appreciation of 23.71% against one American dollar.
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