https://www.myjoyonline.com/cedi-expected-to-remain-stable-against-dollar-this-week-1-going-for-%c2%a211-58/-------https://www.myjoyonline.com/cedi-expected-to-remain-stable-against-dollar-this-week-1-going-for-%c2%a211-58/

The Ghana cedi is expected to remain relatively stable against the US dollar this week as risk-off investor sentiment cools off.

Demand for US dollar last week outstripped supply despite a slowing inflation. This caused the cedi to fall to levels seen in the second quarter of 2023.

The Bank of Ghana provided $20 million in the 36th bi-weekly foreign exchange auction to the Bulk Oil Distribution Companies, but this was insufficient to slowdown the rising corporate demand.  

The local currency lost marginally (0.46%) to the US dollar last week. Conversely, it gained 0.17% the pound, but remained stable against the Euro.

So far this year, the cedi has lost about 11.6% to the dollar in the retail market and about 22% to the American greenback on the retail market.

The Ghana Statistical Service (GSS) reported a significant drop in inflation for August23 to 40.1%. The cooling print was attributed to decreased food inflation, which dropped from 55% to 51.9%.

Additionally, Fitch Solutions has revised its forecast for the Ghana cedi for the end of the year 2023, predicting it will reach ¢11.40/$ instead of the initial forecast of ¢12.40/$.

 This analysts anticipate the cedi to move gently as risk-off investor sentiment cools off.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.