The Ghana cedi currency showed a mixed performance over the two-week review period, depreciating slightly in the interbank market while strengthening in retail market.
The US dollar/Ghana cedi closed at a midrate of GH¢10.88 in the interbank market, up from GH¢10.70.
However, the pound and euro eased by 2.70% and 2.57% to close at GH¢14.78 and GH¢12.80, respectively against the cedi.
In contrast, the retail rates saw the dollar firm modestly against the cedi to GH¢11.90 from GH¢12.15, while the pound and euro strengthened by 1.58% and 2.18%, closing at midrates of GH¢15.80 and GH¢13.75, respectively.
“As expected, renewed demand exceeding FX [forex] supply caused modest cedi losses in the interbank market, while relatively subdued retail demand likely prompted slight price adjustments to attract buyers. Looking ahead, we forecast a stronger cedi over the next two weeks, underpinned by anticipated FX injections to temper bearish expectations”, said Databank Research.
“On the external front, global rerouted flows and interest appear to favour persistent dollar weakness as sovereigns cautiously trim US Treasury holdings despite yield appeal. Coupled with expectations of a dovish Fed under Trump, our timing on these flows positions us ahead of the curve, eyeing a GH¢10.70/US dollar base case”, it added.
Meanwhile, the cedi started trading this week at GH¢12.00 to one American greenback.
Its year-to-date appreciation stands at 1.88% to the dollar.
Source: Joy Business
