The cedi’s brief gains last week have proved short-lived as the dollar strengthened again on Monday. After appreciating on Thursday and Friday, moving from 15.70/15.80 to 15.55/15.66, the cedi was trading at 15.60/15.70 by 10:00 AM on Monday. The earlier gains were attributed to an increased supply of dollars on the interbank market. However, despite high dollar availability, the cedi is losing ground.
Currency Trader Kodzo Dziwornu Letsa told The High Street Journal, “We’re seeing the pair pick up a little bit from last Friday’s session. Bidding interest seems to be returning to the market.” He expects higher trading volumes throughout the day as demand for the dollar rises.
The cedi has depreciated by about 21% against the dollar, primarily due to reduced dollar inflows from cocoa exports and limited access to international markets. Speculations about a possible Central Bank intervention, which had temporarily increased dollar supply and lowered demand, have not yet materialized. As a result, the cedi is losing some of the gains it made on Friday.
The cedi stability in the month of August led to a reduction in the price of petroleum products on Friday, providing some relief to the motoring and general public.
