Negative sentiments around cedi to persist until visibility of ongoing IMF negotiations – Report

The negative sentiments around the cedi would persist until there is visibility on Ghana’s ongoing negotiations with the International Monetary Fund, Databank Research has revealed.

Again, the possible delays in the 2023 budget presentation, owing to the government’s keenness on capturing the IMF deal in the budget, will further quiver investor confidence, breeding uncertainties in the market.

The cedi witnessed renewed depreciatory pressures last week after seeing some stability in the previous week.

It weakened across its major trading pairs, posting a weekly depreciation of 3.79% against the dollar and 7.03% against the pound in the retail market.

It also depreciated by 7.67% against the euro in the retail market.

“We expect the negative sentiments around the cedi to persist until there is visibility on Ghana’s ongoing negotiations with the IMF.

The cedi witnessed renewed depreciatory pressures last week after seeing some stability in the previous week, trading at a bid/ask rate of ¢13.07/¢13.08 to the US dollar on the interbank market and ¢14.20/¢14.80 in the retail market.

In the 16th Forex Forward Auction for the Bulk Oil Distribution Companies, the Bank of Ghana received and allocated $60 million at a 30-day forward rate of ¢13.3138 per dollar.

This is against ¢13.2474/US$ in the previous auction, signaling intense demand pressures