Ghana cedi is anticipated to face sustained pressure this week due to high foreign exchange demand, despite the country’s progress with the IMF’s Economic Credit Facility program.

Last week, the cedi continued its decline against key currencies, driven by increased foreign and domestic demand. To help balance demand, the Bank of Ghana accepted US$89.3 million in bids during its 7-day foreign exchange auction.

However, this measure proved insufficient, with the cedi depreciating by 1.06% over the week, closing at GH¢16.55 per US dollar.

The currency also fell 0.23% against the pound and 0.28% against the euro within the same period.

As of Monday, the cedi had slid to GH¢16.65 against the dollar, marking a slight week-on-week decline. Since the start of the year, the cedi has depreciated by over 26% against the dollar, ranking it among the three weakest-performing currencies in Sub-Saharan Africa.

To further support demand, the Bank of Ghana plans to auction an additional US$20 million for Bulk Oil Distribution Companies (BDCs) this week.

Although this intervention may ease some demand pressures, analysts anticipate the cedi will continue to experience strain as foreign exchange demand remains elevated.