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.
Latest Stories
-
You are lucky I didn’t cite you for contempt – Bernard Ahiafor tells Afenyo Markin
4 minutes -
Energy Ministry withdraws directive seeking to unitize ENI, Springfield and Vitol oil fields
4 minutes -
Non-adherence to family planning results in maternal death and poverty – GHS
11 minutes -
Hilal Committee announces March 1 as starting date of 2025 Ramadan fasting if the moon is sighted
19 minutes -
I didn’t apply for GETFund scholarship, GIMPA selected me – Srem-Sai
20 minutes -
Appointments C’ttee chair abruptly terminates vetting of Deputy AG nominee
40 minutes -
Rex Omar appointed Presidential Staffer for Blackstar Experience
50 minutes -
Mass dismissal: Public sector employment should be devoid of partisan politics – Benjamin Quashie
55 minutes -
Ernest Yaw Kumi: Supreme Court stops Koforidua High Court from sentencing Akwatia MP
1 hour -
DPE2025 delegation confers with Housing Minister
1 hour -
Kofi Okyere Darko appointed Presidential Adviser on Diaspora Affairs
1 hour -
Nestlé Ghana unveils new NIDO packaging: A strong commitment to nutrition & sustainability
1 hour -
24-year-old with vision and hearing impairments appeals for support to procure a pair of hearing aids
1 hour -
ECG anticipates reduction in power losses as Anwomaso electricity generation hub nears completion
1 hour -
‘My dad can’t be a racist’ – Drogba defends Mourinho
1 hour