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According to the latest exchange rate released by the Bank of Ghana on Friday, May 29, the Ghana cedi was trading at 11.7176 to the US dollar.
A day earlier, on Thursday, May 28, the cedi was buying at 11.68 to the dollar and selling at 11.6926, reflecting slight pressure on the local currency.
The recent movement comes amid increased demand for foreign exchange, particularly from Ghana’s energy sector. Sources familiar with the forex market say rising global crude oil prices, driven by ongoing tensions between the United States and Iran, have increased the cost of importing fuel, placing added pressure on the cedi.
Despite the situation, market observers say there is no cause for alarm, noting that the central bank remains in a strong position to manage the market.
With foreign reserves estimated at $14.42 billion, the Bank of Ghana is said to have sufficient capacity to meet seasonal forex demand and stabilize the currency market when necessary.
Speaking during the 130th Monetary Policy Press Briefing, Dr. Johnson Asiama explained that the current pressure on the cedi is temporary and linked mainly to seasonal factors such as dividend payments and increased forex demand from the energy sector.
He assured the public that the central bank has enough foreign currency reserves to prevent excessive fluctuations in the exchange rate and maintain market stability.
Dr. Asiama further noted that movements in the cedi’s value are a normal part of economic activity, adding that the Bank’s primary concern is preventing extreme volatility rather than ordinary appreciation or depreciation.
Although the cedi has experienced some recent pressure, it has generally remained strong, having appreciated by more than 40 percent last year and continuing to show resilience in the face of current market challenges.
Source: 3news
