The Ghana cedi is expected to record a modest stability as positive sentiment builds on the back of the World Bank’s US$360 million concessional loan.
This will come amid a stronger forex support further anchoring this outlook.
However, the upcoming Monetary Policy Committee decisions, particularly a cautious US rate cut to address softening labour data, will be pivotal in shaping US dollar Ghana cedi sentiments.
Last week, the cedi came under sustained depreciation over the two-week assessment period across both the interbank and retail markets.
In the interbank market, the currency fell further, weakening from a midrate of GH¢11.40 to GH¢12.15 per US dollar.
The pound and euro also declined by 6.41% and 6.28%, settling at GH¢16.45 and GH¢14.23, respectively.
In the retail market, the cedi posted a 6.72% loss against the US dollar, closing at a midrate of GH¢13.40. It also depreciated against the pound and euro, which closed at GH¢17.60 and GH¢15.45, compared to GH¢16.55 and GH¢14.35 recorded two weeks prior.
“The marginal setback of the cedi, driven by heightened seasonal demand and weak sentiment, confirms our earlier expectations of near-term pressure during this period. We believe this trend was fuelled by bearish expectations, delayed FX [forex] supply interventions, and the drag from capital controls on FX transactions”, Databank Research said.
“Looking ahead, we expect modest stability as positive sentiment builds on the back of the World Bank’s US$300 million concessional loan, with stronger FX [forex] support further anchoring this outlook”, it added.
Meanwhile, the cedi started this week going GH¢13.60 against the dollar at the forex bureaus. On the interbank market, it is selling at GH¢12.20.
It’s year-to-date gain now stands at 16.29% to the American greenback.
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Source: myjoyonline.com
