The Ghana cedi began this week strongly with a marginal acquire towards the US greenback within the retail market.
It bought at GH¢10.98 within the retail market and GH¢10.25 within the interbank market.
To this point this 12 months, the cedi has gained almost 50% in worth towards the American buck.
Final week, the native foreign money continued to make headway, supported by regular overseas inflows and mushy demand for laborious foreign money.
The cedi gained 6.52% week-on-week versus the US greenback within the interbank market, sustaining its place as the highest performer amongst a basket of 15 sub-Saharan African currencies.
On the retail market, it appreciated by 12.3% versus the greenback, 9.6% towards the pound and 11.5% towards the euro.
Nonetheless, a Reuters report indicated that offshore buyers are step by step returning with foreign exchange demand as they search to repatriate earnings from their cedi investments.
Databank Analysis mentioned “We consider {that a} regular demand development could put some modest strain on the GHS [cedi] within the close to time period.”
Nonetheless, it expects ample liquidity out there this week and the Financial institution of Ghana’s focused help to assist preserve the cedi afloat.
Fitch Options Revises Finish-Yr Cedi Price
Fitch Options revised its end-of-year forecast of cedi-to-dollar at GH¢13.0, from its earlier projection of GH¢15.5 to 1 American buck.
It is usually forecasting a 12.9% appreciation towards the US greenback in 2025.
In keeping with the UK-based agency, its assumption relies on the cedi appreciating by 16% between late April 2025 and the center of Might 2025. That is on the again of upper gold costs.
“The cedi has appreciated by 16% between late April and the center of Might (time of writing) on the again of upper gold costs, leading to our Nation Threat workforce revising down their end-2025 forecast for the Ghanaian cedi to GH¢13.0/US greenback, from our earlier projection of GH¢15.5/US greenback. We now forecast that the foreign money will strengthen by 12.9% over 2025, from GH¢14.7/US greenback on the finish of 2024”.
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