The Ghana cedi has refused to record any significant improvement in strength despite the Bank of Ghana’s liquidity support last Friday.
The latest information gathered by The High Street Journal on the exchange rate market reveals that the cedi began trading on Monday morning at 15.35/15.50 pair to the dollar.
This is the same rate the local currency traded by the close of trading last Friday.
Meanwhile, the Bank of Ghana on Friday intervened in the market by selling more liquidity support. The Central Bank on Friday sold $106 million to the market to strengthen the cedi.
However, despite the intervention, no impact has been made on the local currency as was anticipated. This signifies that the BoG’s efforts to stabilize and strengthen the exchange rate have not yielded any significant results.
Forex Trader, Kodzo Letsa tells The High Street Journal that the prevailing rate is expected to be maintained for some time.
“Even with the Bank of Ghana providing some liquidity, it looks like we’ll see the pair holding steady at these levels, with no change from last Friday’s auction,” he remarked.
He therefore projected that “I expect this to continue throughout the day.”
Although the rate has been held constant, businesses reliant on the dollar for their operations may not see immediate relief. This could continue to keep prices of goods and services elevated.
Market watchers, analysts, and businesses will be looking at further actions from the Bank of Ghana, including future forex auctions, interest rate adjustments, and broader economic policies aimed at strengthening the cedi.
