Last week, the Ghanaian cedi experienced a 1.22% depreciation against the US dollar in the retail market, alongside losses of 0.65% to the pound and 0.19% against the euro, despite a cooling inflation rate of 23.2% in December 2023.

Despite the Central Bank's auction of $20 million for Bulk Oil Distribution Companies in its first 2024 sale, corporate demand continued unabated.

The retail market or forex bureaus closed trades with the cedi at GH¢12.33/$, compared to GH¢12.18/$ the previous week.

Analysts are optimistic about the potential positive impact of the expected $600 million inflows from the International Monetary Fund (IMF) following the board's approval of Ghana’s program review on January 19, 2024.

This is anticipated to enhance market sentiments, bolster foreign exchange reserves, and strengthen supply-side interventions.

On January 12, 2024, the government reached debt restructuring agreements with official creditors, signaling a positive step in Ghana’s economic recovery.

Year-to-date, the local currency has depreciated approximately 1.50% against the dollar in the retail market.