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
-
Napo’s selection as running mate negatively impacted NPP’s fortunes – KNUST research reveals
16 minutes -
Shippers’ Authority CEO visits Western Zone to assess operations
23 minutes -
Western Region GJA damns attack on journalists by illegal miners at Breman Adomanya Forest
46 minutes -
Electoral Commissioners don’t attend swearing-in ceremonies without invitation – Jean Mensa to critics
52 minutes -
Joy FM announces fun-packed activities for 2025 Ghana Month celebration
1 hour -
Minority rejects nomination of Deputy AG-designate Srem Sai
1 hour -
Deputy Lands Minister-designate opposes ban on small-scale mining
1 hour -
Court remands suspect in fatal shooting at Nungua enstoolment ceremony
1 hour -
Renewed galamsey fight: Make your presence felt – Veep to MPs from mining communities
1 hour -
Minority protests Appointment C’ttee Chair’s decision to abruptly end vetting of Justice Srem-Sai
1 hour -
Bridges to nowhere? The foreign students desk policy that stops halfway
1 hour -
You are lucky I didn’t cite you for contempt – Bernard Ahiafor tells Afenyo Markin
2 hours -
Energy Ministry withdraws directive seeking to unitize ENI, Springfield, and Vitol oil fields
2 hours -
Non-adherence to family planning results in maternal death and poverty – GHS
2 hours -
Hilal Committee announces March 1 as starting date of 2025 Ramadan fasting if the moon is sighted
2 hours