Cedi appreciates against dollar in retail market but depreciates on interbank market

The Ghana cedi appreciated marginally against the US dollar in the retail market but depreciated against the American greenback on the interbank market.

According to trading results, the local unit posted a modest 1.06% gain, trading between GH¢11.40 and GH¢11.90 to one dollar.

Its year-to-date gain stood at 31.85%, keeping its position as one of the best-performing currencies in the world.

The cedi also appreciated by 0.64% against the pound to close at GH¢15.65/GBP, but slipped 0.73% against the euro to GH¢13.70/EUR.

On the other hand, it depreciated by 1.41% to close at GH¢10.65 to a dollar on the interbank market.

“In line with our expectations, the cedi posted modest stability on the interbank market, firming from GH¢10.80/USD to GH¢10.65/USD amid renewed corporate demand pressures and thin FX [foreign exchange] support”, Databank Research said.

In the retail market, demand pressures weighed on some gains, but quote shading largely kept the cedi range-bound, yielding modest fortnight-end gains.

“Looking ahead, we expect near-term US dollar/Ghana cedi pressures to intensify as global tensions ease and the CBOE Volatility Index (VIX) stabilises, potentially drawing flows away from gold and into US dollar assets”, it added.

Meanwhile, the local currency began trading this week August 18, 2024, unchanged at GH¢11.90 to one US dollar.

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