The Ghanaian cedi resumed its downward trajectory last week, depreciating by 9.65% against the dollar on the retail market since the year began, despite interventions by the Bank of Ghana. 

The Central Bank's auction of $20 million to Bulk Oil Distribution Companies at a forward rate of GH¢13.23 to a dollar failed to stem the currency's decline.

In the previous week, the local currency weakened by 0.19% against the dollar and 0.90% against the pound, although it closed with a marginal 0.17% gain against the euro.

Over the weekend, Ghanaian officials and the International Monetary Fund (IMF) reached a staff-level agreement on the second review of the $3 billion Extended Credit Facility. 

This development signals progress towards accessing the planned $360 million funding. However, the approval and disbursement of funds hinge on Ghana reaching an agreement on a Memorandum of Understanding consistent with the $5.4 billion official creditor restructuring deal reached in January 2024.

Additionally, Ghana was unable to reach a debt restructuring agreement with two international bondholder groups. 

While the IMF board's approval is not contingent on the debt restructuring, analysts foresee renewed market uncertainty, potentially driving investors towards safe-haven assets and further weakening the Ghanaian cedi this week.

Currently, the cedi is averaging GH¢13.60 to a dollar at forex bureaus.