The cedi is expected to find a cushion on the back of expected foreign exchange inflows from the $1.3 billion cocoa syndicated loan.
The dollar inflows is expected by October 2022.
According to the Weekly Currency Report by Databank Research, the European Central Bank hike of deposit rate by 75 basis points and an impending US Fed policy rate hike represent depreciatory pressure points for the local unit.
“In the coming weeks, we expect the cedi to find a cushion on the back of expected FX [foreign exchange] inflows from the $1.3 billion cocoa syndicated loan. We reckon, however, that the ECB hike of deposit rate by 75bps and an impending US Fed policy rate hike represent depreciatory pressure points for the local unit”.
Cedi slid slightly against dollar last week
The cedi slid against the dollar last week after a short-lived rally the previous week.
Despite the improved dollar reserves, sustained demand for the dollar weighed on the cedi, subduing its rally in the first week of September 2022.
Last week, the Bank of Ghana allotted $25 million across the 7-day to 75-day tenors against total bids of $107.75 million.
The resulting bid-to-cover ratio of 4.31x vs 4.38x in the previous auction shows a marginal relaxation of demand pressures, although the wide demand supply disparity persists.
The cedi shed 0.28% week-on-week (w/w) against the greenback on the Bank of Ghana reference rate market, lost 0.41% w/w vs euro, and slid 0.55% w/w against pond.
However, on the forex bureau, the local currency lost 1.74% w/w against the greenback, with a bid/offer quote of 9.93/10.20, deepening its year-to-date loss to 35.52% against the US dollar.
Latest Stories
-
MTN Ghana champions youth mentorship drive at UG with focus on digital skills
12 minutes -
Kufuor demands respect and inclusion; laments marginalisation by NPP
24 minutes -
Black Queens outstanding allowances has been paid – Ghana’s Ambassador to Morocco
54 minutes -
Mobik Energy CEO raises alarm over Tarkwa’s disappearing rivers and environmental neglect
1 hour -
Former Nigerian President Muhammadu Buhari dies in London
2 hours -
Hard work, not betting, will secure your future -Mobik Energy CEO advises Tarkwa Youth
2 hours -
GIA boss debunks claim payment misconceptions as ‘Street Insurance Campaign’ educates public
2 hours -
Asempa FM’s Ekosiisen supports renal patients with GHS100K, urges gov’t to absorb full cost of dialysis care
3 hours -
WAFCON 2024: We have ‘good options in attack’ – Bjorkegren backs Queens to improve goalscoring
3 hours -
Vice President convenes strategic stakeholder meeting on Women’s Development Bank
3 hours -
Bawumia visits Hawa Koomson after violent attack during Ablekuma North rerun
3 hours -
Bawumia visits assault victims in Ablekuma North rerun; pledges support
3 hours -
Mahama charges Transport Minister and Attorney-General to resolve unauthorised shipping charges
3 hours -
Mahama engages freight forwarders on 24-Hour Economy
3 hours -
Rejecting top-bottom tyranny: NPP must reclaim its soul – Activist
4 hours