Audio By Carbonatix
The Ghana cedi is recovering modestly on external tailwinds and sentiment.
Over the past fortnight, the cedi encountered mild demand-driven pressures in the opening week, as anticipated.
However, it clawed back losses in the latter half as broad-based “sell America” sentiment underpinned external support.
In the interbank market, the cedi appreciated by 0.09% against the US dollar, 0.86% against the pound sterling, and 1.16% against the euro, closing at mid rates of GH¢10.97 to the US dollar, GH¢14.81 to the pound and GH¢12.93 to the euro.
The positive momentum filtered through to the retail segment, where the currency strengthened by 0.6% against the US dollar, 1.29% against the pound sterling, and 1.11% against the euro. It settled the period at mid-rates of GH¢11.63/US dollar, GH¢15.55/pound and GH¢13.50/euro.
“We concur that the cedi’s recent appreciation mirrors gains across other major Sub-Saharan African (SSA) currencies, highlighting broad-based external support from sustained US dollar weakness”, said Databank Research.
In the near term, it expects these tailwinds to drive further cedi strength as expectations of continued US dollar softness moderate demand for the greenback, amid heightened risks of a potential Iran confrontation.
“Supported by targeted forex intervention from the Central Bank through a US$1.0 billion facility gradually deployed to meet market demand, we anticipate the cedi’s gains extending to an interbank mid-rate range of GH¢10.85 - GH¢10.95/US dollar over the next fortnight. Retail rates should align around GH¢11.55-11.60/US dollar, with scope for tighter spreads if inflows accelerate.
Meanwhile, the cedi began this week going for GH¢11.70 in the retail market.
Its year-to-date gain stood at 4.95% to the American greenback.
Latest Stories
-
GIPC now an authority
27 seconds -
Mahama urges African leaders to turn health pledges into concrete investments
11 minutes -
NPP Greater Accra Regional Organiser hopeful touts experience, grassroots mobilisation record
23 minutes -
WHO warns Africa risks losing decades of health gains as external funding declines
47 minutes -
Chief of Staff plants shea tree at Jubilee House to reaffirm government’s commitment to shea industry development
1 hour -
GCB Bank unlocks new pathway to credit with Tier 3 pension-backed loan
1 hour -
Mid-Year Budget: ‘MoU is not a payslip’ – Oppong Nkrumah questions gov’t jobs, economic claims
1 hour -
Prof Mills was ethical; some appointees exploited his weakness as his health declined – Prof Frimpong-Boateng
1 hour -
Halt prosecution of NDC organiser over comments made against me – Bawumia urges Police, AG
2 hours -
Prof Mills dismissed me twice, but I speak well of him because I knew him – Prof Frimpong-Boateng
2 hours -
Government reaffirms commitment to developing Ghana’s shea industry
2 hours -
EOCO rescues 39 victims in Hohoe anti-trafficking operation, investigates suspected travel fraud syndicate
2 hours -
Restaurant impersonation scams cost victims nearly GH¢300,000 in six months – CSA
2 hours -
GTEC directs universities to stop using entrance exams as precondition for admission
2 hours -
Assemblies urged to lead climate action in Upper West as EPA inspects mitigation sites
2 hours