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
-
I didn’t think of making money from radio – Lexis Bill
3 seconds -
Tree Crops Authority meets Bono Regional Minister to boost cashew industry, tackle galamsey
2 minutes -
Mahama appoints Isaac Adongo, 11 others as Board members for Bank of Ghana
5 minutes -
Emmanuel Agyemang-Badu joins GNPC to battle GFA
12 minutes -
VFS Global launches AI-Powered Chatbot for UK visa customers
13 minutes -
Eastern corridor road remains a priority for this gov’t – Alhassan Suhuyini
19 minutes -
Restore Local officially launches to boost locally led land restoration across Africa
27 minutes -
It’s debatable to say the previous gov’t did more road projects in Tamale – Alhassan Suhuyini
29 minutes -
Ejura Traditional Council leads efforts to strengthen synergy between community and security agencies
30 minutes -
Support content creators marketing Ghana – Culture and tourism curator
30 minutes -
‘Only one bodyguard, no extravagance’ – Former AG demands retraction from Dafemekpor over false claims
41 minutes -
UG Corporate Football League opens with four goals
44 minutes -
Workmen’s Compensation Law in Ghana and the role of insurance companies under new Insurance Act
45 minutes -
E Vibes: Becky to host Afro Harmony band
47 minutes -
Republic Bank Ghana announces the appointment of new Board Chairman
47 minutes