The Ghana cedi shed 1.73% in value to the US dollar last week to take its year-to-date loss to 5.88%.
It also lost 2.76% against the pound and depreciated significantly by 4.23% to the euro.
The local currency continued to plummet against the major trading currencies following persistent demand pressures.
This is despite the auctioning of $20 million to Bulk Oil Distributors (BDCs) by the Bank of Ghana) at a 30-day forward rate of GH¢12.72 to a dollar. This signaled increasing demand.
Some foreign investors last week repatriated their funds from the coupon payments on their Government of Ghana bonds. This weighed on the local unit.
Analysts believe the development and persistent corporate forex demand are expected to exert downward pressure on the cedi in the near term.
Also, despite a marginal drop in Eurozone inflation on February 24, 2024, the price pressures persisted as the drop was lower than expected.
This scenario led investors to anticipate that the European Central Bank may maintain interest rates at their current highs, a factor analysts believe contributed to the strengthening of the euro against the cedi.
Meanwhile, the cedi started this week gaining marginally against the dollar and the other major foreign currencies.
This follows the suspension of the Foreign Exchange Trading Licenses of Guaranty Trust Bank Ghana and FBN Bank Ghana by the Bank of Ghana over what the regulator described as various breaches of market regulation.
The local currency sold for GH¢13.05 to the American greenback, according to checks by Joy Business at some forex bureaus.