The persistent demand pressures for the dollar would continue to weigh negatively on the cedi’s performance this week.
This follows a marginal depreciation of the local currency last week, taking its year-to-date loss to about 3.0%.
The elevated demand continued to inhibit the cedi’s performance last week, causing it to weaken across the major trading currencies.
The Central Bank supported the market with $3 million but this was not substantial enough to keep the local currency afloat as it shed 0.60% week-on-week against the American greenback to close the week at GH¢12.80 in the retail market.
The local unit also depreciated 0.16% versus the pound but gained 0.19% against the euro.
Global creditors and rating agencies convened a meeting last week to discuss the impact of rating agencies on some debt-distressed nations, including Ghana. The meeting focused on how actions from rating agencies have exacerbated borrowing costs after successfully restructuring debt.
Analysts believe a positive revision to the rating method for the debt-distressed countries by these agencies would be positive for investor confidence in Ghana and improve the cedis’ outlook in the medium term.
Nonetheless, the pressure on the cedi is expected to continue.
Source: Joy Business