Cedi expected to post mixed performance this week
The Ghana cedi is expected to post a mixed performance this week, after few weeks of sustained improved value, some market information firm have projected.
Last week, the cedi strengthened further in value against the dollar and the other major foreign currencies on the forex market due to increased foreign exchange liquidity.
The Bank of Ghana sold about $7 million on the spot market as against $5.2 million the previous week.
The local currency gained 1.39% against the American greenback last week, printing a mid-rate of 12.63/$ on the retail market while stabilising at 11.01/$ on the interbank market. The local currency also gained 0.50% week-on-week vs pound but lost 0.38% week-on-week vs the euro on the retail market..
Some analysts believe President Akufo-Addo’s statement at the State of Nation Address on Ghana’s progress with the International Monetary Fund bolstered the outlook of the cedi.
However the announcement of an emergency lending facility by the US Federal Reserve to shore up US banks’ reserves and pay all the SVB customers may strengthen the dollar going forward. The facility will increase spending and encourage the current Fed’s planned policy rate hikes
Nonetheless, the cedi’s performance will be fairly balanced.