The depreciation of the Ghana cedi against the US dollar slowed down last week, with the local unit losing 0.96% in value.
On June 24, the cedi began trading at GHS15.75 to the greenback.
The local currency weakened against other major trading currencies last week, driven by strong corporate demand pressures amid a thin supply.
Despite the Bank of Ghana selling about $11mn on the spot market, the cedi fell 0.96% week-on-week against the dollar on the retail market, shed 0.38% against the pound and 0.45% against the euro.
Over the weekend, Ghana and its international bondholders reached an agreement in principle to restructure $13bn of its debts. The deal includes a haircut of up to 37% on principal and extended maturities.
Analysts view this swift restructuring process, following the bilateral debt rework, as positive for market sentiments and believe it may help slow speculative attacks on the cedi in the medium term, Joy News notes.
However, the local unit is expected to lose ground in the coming days as corporate demand persists ahead of the International Monetary Fund (IMF) board meeting scheduled for later this week.
Source: Daily Mail GH
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