Adverse sentiments around the ghana cedi will continue to persist until visibility of ongoing International Monetary Fund (IMF) negotiations.
Databank Research has revealed that, the negative sentiments around the cedi pertaining to its depreciation to the dollar, pound, euro and other international currencies would pursue until there is visibility on Ghana’s ongoing negotiations with the International Monetary Fund.
The Research indicated that 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.
“The cedi weakened across its major trading pairs, reporting a weekly depreciation of 3.79% against the dollar, and 7.03% against the pound in the retail market.
“In the retail market, It also depreciated by 7.67% against the euro.”
Data Bank Research
The research further stipulated that 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.
According to the Research, the possible delays in the presentation of the 2023 budget is owing to the fact government at all cost wants to capture the IMF deal in the budget. This delay owing to government’s keenness on capturing the IMF deal in the budget will further tremble investors confidence in investing in the country and as well breed uncertainties in the market.
