The Ghana cedi is expected to endure some volatility against the US dollar on the retail market this week.
This follows a marginal depreciation against the American greenback last week.
The local currency shaved 0.35% in value to the American greenback. It, however, strengthened 1.02% and 0.20% against the pound and euro respectively on the retail market.
The year-to-date loss of the cedi to the dollar on the retail market stood at 11.40%, whilst the interbank market was estimated at about 22%.
The forex market was a bit choppy last week as the cedi saw some volatility against the US dollar.
This is despite the Bank of Ghana announcing plan to auction $120 million in its FX forward auctions for the Bulk Oil Distribution Companies quarter 4, 2023, with $20 million to be sold in each of the six auctions throughout the period.
Demand pressures oscillated throughout the week amidst limited foreign exchange supply with local corporates comprising the bulk of demand.
The International Monetary Fund will begin their first review of the Extended Credit Facility programme from the end of September 2023 throughout October 2023.
The review will unlock the second tranche disbursement from the IMF to the tune of $600 million contingent on meeting the various performance targets under the programme.
Analysts believe a successful review will help bolster investor confidence and support the local unit.