Cedi Opens Week Slightly Weaker Against Dollar
The Ghanaian cedi has started the week on a slightly weaker note against the US dollar, extending the gradual depreciation trend observed in recent days.
Data from the interbank market show that the local currency lost some ground against the dollar last week, although it remained relatively stable against the euro and recorded only modest losses against the British pound.
According to market figures, the official interbank rate moved from GHS 10.7200 per dollar on Monday, March 2, to GHS 10.7700 on Thursday, March 5, representing a decline of approximately 0.47 percent over the four-day trading period. By Monday, March 9, the cedi was trading at around GHS 10.77 per dollar, holding steady from the previous week’s close.
Despite the slight weakening against the dollar, the local currency showed mixed movements against the euro. The cedi opened the week at GHS 12.5193 per euro on Monday, strengthened slightly to GHS 12.4565 on Tuesday, before edging back up to GHS 12.5031 on Wednesday and closing at GHS 12.5000 on Thursday. Overall, the cedi ended the week virtually unchanged against the euro.
Against the British pound, however, the cedi recorded minor losses. The exchange rate moved from GHS 14.3321 per pound on Monday to GHS 14.3774 by Thursday, representing a depreciation of roughly 0.32 percent.
Analysts say the cedi’s recent pressure against the dollar reflects broader global market developments. Increased geopolitical tensions in the Middle East have strengthened demand for the US dollar, which is widely considered a safe-haven currency during periods of uncertainty. The stronger dollar has therefore weighed on many emerging market currencies, including the Ghanaian cedi.
The US dollar, issued by the Federal Reserve System’s monetary jurisdiction in the United States, has gained strength across several global markets in recent weeks, influencing exchange rate movements in developing economies.
Meanwhile, activity in the retail foreign exchange market suggests continued depreciation pressure on the cedi. Forex bureaux operators reported an average mid-rate of about GHS 11.58 per dollar, which is approximately 7.5 percent higher than the official interbank rate.
The difference between the official and parallel market rates often reflects stronger demand for foreign currency in the retail market, particularly from importers and businesses seeking dollars for international transactions.
Market observers say the cedi’s performance in the coming weeks will likely depend on several factors, including global dollar strength, domestic liquidity conditions and foreign exchange inflows into the economy.
Overall, the currency experienced gradual depreciation against the dollar last week, remained largely stable against the euro, and recorded minor losses against the pound, while parallel market activity continues to indicate persistent downward pressure linked to the strong global demand for the US dollar.
