Market sentiments is expected to improve on the forex market in the coming weeks, a move which should auger well for the Ghana cedi’s near-term outlook.
This is due to the expected $250 million facility from the World Bank under the Ghana Energy Sector Recovery Programme to bolster the current energy sector challenges.
The facility is also intended to help reduce the energy sector debts and maintain a consistent energy supply across the country, promoting economic growth.
Most analysts believe the fund will improve the country’s foreign reserves to boost foreign exchange liquidity.
Last week, the local unit continued to depreciate against the dollar and the pound albeit at a slower pace, as demand pressures appeared to be easing.
The cedi quoted at GH¢16.48 to a dollar after losing 1.21% week-on-week (compared to 1.84% the previous week).
The cedi also weakened by 0.71% week-on-week against the pound, as compared with 1.43% the previous week.
However, the local unit recovered its 0.42% week-on-week lose against the euro on the retail market.
Since January 1, 2024, the cedi has lost about 25.61% to the US dollar.
Source: Joy Business
