The cedi began the week with a further marginal depreciation against the major foreign currencies following a mixed performance last week.
The local currency lost marginal ground against the US dollar on the retail market last week amid foreign exchange liquidity and cooling inflation.
It depreciated by 0.16% to the American greenback, taking its year-to-date loss to 1.11%. It traded at an average of GH¢15.79 to a dollar in the retail market.
It, however, closed stronger (0.31%) to the euro but depreciated by 0.38% against the pound in the retail market.
The cedi also began the week of March 10, 2025, going for GH¢15.80 to one dollar.
Inflation slowed down to 23.1% in February 2025, 40 basis points down from 23.5% in January 2025.
The decline, which was the second consecutive time, was primarily due to a sharp decrease in food inflation, which fell by 20 basis points to 28.1%.
The month-on-month inflation rate also fell to 1.3%, down from 1.7% in January 2025.
Analysts expect the sharp drop in inflation to improve market sentiments and subsequently ease the pressure on the cedi in the near term.
Again, the finance minister is expected to present the 2025 fiscal budget to parliament tomorrow March 11, 2025.
Analysts expect the cedi to trade relatively stable this week as the market sentiment hinges on the government’s fiscal strategy to keep the local unit afloat for the rest of the year.
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