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0 The Ghana cedi started this week on a weaker note after strengthening against the US dollar last week amid a weakening US dollar Index.
It depreciated slightly against the American greenback in the retail market, going for GH¢16.00.
This culminated in a year-to-date depreciation of 2.36%.
It is, however, unclear why the cedi has come under some pressure after the ongoing tariff impositions by President Trump’s administration led to a shift in investor sentiment, triggering 197.81 197.81-point week-on-week decline in the U.S. Dollar Index (DXY) to close at 302.02 points (Year-to-Date), reflecting waning confidence in U.S. assets.
Nonetheless, analysts expect the cedi to gain this week as the DXY continues to dip due to shifts in investors’ appetite away from US dollar-denominated assets.
Additionally, the Bank of Ghana published the auction calendar for the Bulk Oil Distribution Companies and intends to sell US$120 million in quarter 2 of 2025.
Databank Research believes these developments will positively impact market sentiments around the cedi’s performance in the near term.
Last week, the cedi gained 0.16% week-on-week versus the US dollar to close at a mid-rate of GH¢15.78, while shedding 0.74% week-on-week versus the pound and 0.59% week-on-week to the euro. This narrowed the year-to-date depreciation of the cedi to the dollar at 1.57%
Indeed, the demand for European and British assets surged, strengthening the euro and pound.
