The cedi's depreciation against the dollar persisted, reaching GH¢14.18 against the American currency in the retail market.

This occurs despite the Bank of Ghana's sale of $20 million to Bulk Oil Distribution Companies (BDCs) in the 51st auction.

The local currency has experienced a depreciation of approximately 13.45% against the US dollar, positioning it as one of the underperforming currencies in Africa in 2024.

At the onset of this week, the local unit was trading at GH¢14.05 to the dollar in most forex bureaus.

Despite expectations that this auction would alleviate forex demand in the market, persistent corporate forex demand pressures continue to undermine the local currency.

Furthermore, the local currency significantly depreciated against the euro and pound respectively.

However, if Ghana secures a deal with its Eurobond holders and receives anticipated inflows from the International Monetary Fund and other multilateral sources, the challenges facing the cedi may be mitigated.

Since February 2024, the cedi has been on a rapid depreciatory trajectory due to investor apprehensions regarding Ghana's commercial debt restructuring progress and the sustained dominance of the US dollar.

London-based Fitch Solutions had said that although a proposed debt deal with international bondholders was rejected by the International Monetary Fund in April 2024, Ghana's Finance Minister, Dr. Mohammed Amin Adam was optimistic that "significant progress" has been achieved, which “suggests to us that reaching a debt agreement by mid-2024 should be feasible”.

“We expect that this will boost investor confidence in Ghana's economy and policymaking processes, leading to increased foreign exchange inflows and a consequent strengthening of the cedi in half-year 2024”, Fitch Solutions added.