The Ghanaian cedi experienced a slight depreciation against the US dollar, increasing its year-to-date decline to around 26%. This dip was attributed to rising corporate demand and recent Eurobond coupon payments.
In response, the Bank of Ghana conducted a 7-day FX auction, accepting all bids totaling $51.4 million. Despite this intervention, the cedi weakened by 0.15% week-on-week against the dollar, ending the week with a mid-rate of GH¢16.38/$. It also depreciated by 0.24% against the British pound and 0.70% against the euro.
At forex bureaus, the cedi is now trading at GH¢16.40 to the US dollar. This follows the government’s recent Eurobond debt service resumption after completing restructuring agreements with international bondholders. A total of $520 million, including $120 million in consent fees, was disbursed as part of this restructuring, with $320 million going toward deferred coupon payments from 2022.
As the government prepares to fully resume Eurobond debt servicing by January 2025, concerns about Ghana’s foreign exchange reserves have resurfaced. Analysts warn that these concerns could continue to pressure the cedi in the weeks ahead.
SOURCE: JoyBusiness
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