Cedi starts week on a weak note; one dollar going for GH¢16.00

The Ghana cedi started this week weaker. Last week, it had strengthened against the US dollar. This was amid a weakening US dollar Index.

In the retail market, the cedi depreciated slightly. It is now trading at GH¢16.00 against the dollar. This marks a year-to-date depreciation of 2.36%.

The reasons for this pressure on the cedi are unclear. Ongoing tariff impositions by President Trump’s administration may have shifted investor sentiment. This led to a decline in the U.S. Dollar Index (DXY), which fell 197.81 points to close at 302.02 points.

Analysts expect the cedi to gain this week. The DXY continues to dip as investors shift away from US dollar assets.

Additionally, the Bank of Ghana released an auction calendar for Bulk Oil Distribution Companies. They plan to sell US$120 million in the second quarter of 2025.

Databank Research believes these developments will boost market sentiment around the cedi's performance soon.

Last week, the cedi gained 0.16% against the US dollar, closing at GH¢15.78 mid-rate. However, it lost 0.74% against the pound and 0.59% against the euro that week.

This has narrowed its year-to-date depreciation against the dollar to 1.57%. Demand for European and British assets surged, strengthening both currencies.