The Cedi is expected to continue its stability against the US dollar this week.
The cedi opened the week at a mid-rate of ยข11.33 to a dollar and traded steadily, gaining 0.44% on the retail market. It also made weekly gains of 0.34% and 0.20% versus the pound and the euro on the retail market.
On the interbank market, the cedi slid marginally (-0.05%) against the American greenback, but strengthened against the pound (+0.75%) and the euro (+1.30%).
Presently, the local currency has lost about 11.23% to the dollar on the retail market and about 21% on the interbank market.
This is due to an expected foreign exchange auction for Bulk Oil Distribution Companies (BDCs).
While analysts envisage an increase in corporate demand and possible offshore forex repatriation from the coupon payments on the new bonds, the cedi is expected to remain steady this week.
Last week, the local currency remained firm on the spot market, while posting a mixed performance on the interbank market amidst harsh foreign exchange liquidity.
This is despite increased corporate demand, drying up liquidity, although the market experienced minimal activities from offshore investors.
US Federal Reserve announced a cautious policy rate hike due to easing prices and a strengthening US economy. This announcement helped calm market uncertainties as investors foresee a moderate policy hike.
A Business Desk Report