The Ghanaian cedi is now trading at ¢12.10 to the US dollar on the retail or forex market.
This is despite several experts and research institutes forecasting that it will conclude the year at an average of ¢11.60 to the US dollar.
ATL FM’s monitoring of Joy News’ checks indicated that demand for the dollar is strong two months ahead of the Christmas season, according to many currency bureaus.
Local businesses and importers have a high need for foreign exchange prior to the Christmas season.
The expected inflows of $600 million by the International Monetary Fund in November 2023, however, could undo the current depreciation of the cedi.
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Last week, the Central Bank held auctions for $20 million to Bulk Oil Distribution Companies and $2.0 million for spot market interventions. Many observers contended that these sums of money were insufficient to meet the nation’s ongoing need for foreign currency.
Last week, the cedi dropped 0.17% against the dollar, closing at 11.84.
It decreased by 0.60% vs the euro and 0.86% versus the pound on the retail market.
In contrast, the cedi’s performance in the interbank market was uneventful.
Last week, it gained 0.06% vs the euro but lost 0.73% against the US dollar. That did not change in value in comparison to the British pound.
The cedi may have declined more than it has in previous weeks compared to major foreign currencies.