The recent depreciation of the Ghana cedi against the major foreign currencies is expected to continue due to subdued foreign exchange liquidity.
Last week, the local currency depreciated across the major trading currencies as foreign exchange liquidity remained subdued.
Additionally, Ghana Cocoa Boards’s intention to abandon its annual cocoa syndication loan revived market uncertainties surrounding the cedi’s near-term stability.
Analyst also believe the recent coupon payments on Eurobonds by the government may have influenced Ghana cedi-funded foreign exchange demand last week, contributing to the cedi’s depreciation.
Last week, the local unit lost 0.31% against the dollar, 1.82% vs the pound and 3.76% to the euro on the retail market. It sold at GH¢16.28 to a dollar on August 26, 2024, taking its year-to-date loss to 24.57%.
Meanwhile, Ghana is expected commence a 10-day Eurobond debt exchange this week in a bid to conclude the $13 billion Eurobond debt rework.
According to Bloomberg, the exchange will see investors swap their existing bonds for two new optional bonds, that’s the DISCO and PAR.
The DISCO option will offer investors up to 37% haircut with two new bonds maturing in July 2029 and 2035 at an interest rate of 5%. The PAR option on the other hand will also offer investors interest rates of 1.5% on new bonds maturing in Jan 2037 without any haircut.
Analysts expect market uncertainties to improve after a successful exchange, which could reduce the strain on the cedi.
Latest Stories
-
Campari buys minority stake in whisky brands owner
14 mins -
Al-Qaeda-linked group says it was behind Mali attack
30 mins -
12 pregnant women die due to poor road conditions over 5 years, says Asampu Assemblyman
40 mins -
Facebook owner bans Russian state media networks
48 mins -
UBA launches ‘Tastes of Africa Culinary Challenge’ with $5,200 Prize Pool
56 mins -
Excitement builds as tickets for 2024 African Legends Night go on sale
1 hour -
Four children trapped in freezer in Namibia die
1 hour -
What will a US interest rate cut mean for me?
1 hour -
Marlboro owner sells UK inhaler firm over backlash
2 hours -
2 preferred bidders submitted to government for Saglemi Housing Project completion
2 hours -
Opoku-Gyamfi Boateng
2 hours -
Microsoft, BlackRock to launch $30bn fund for AI infrastructure
2 hours -
Building one Ghana with opportunity for all is my priority – Bawumia
2 hours -
We will not forget the respect you have showed to us – Head of Ashaiman Ewe community to Bawumia
3 hours -
‘The fight continues’ after nationwide ‘Enough is Enough’ demo – NDC reaffirms call for transparency
3 hours