Cedi’s Trend To Remain To year End

The Cedi is not likely to experience any major change from its current trend towards the end of the year though fluctuations are unavoidable, the Gold Coast Security Analysts report has indicated.

It said this is based on the assumption that the prevailing international conditions will continue.

A copy of the report sent to the Ghana News Agency yesterday said with Gold hitting record highs on a daily basis, cocoa averaging a monthly appreciation of 3.08 per cent, crude oil remaining below $80 per barrel and the prices of goods and services on a downward trend, the performance of the local currency seems to largely rest on the performance of its counterparts on the global front.

It said the cedi's performance last week remained strongly linked to the performance of its major trading currencies; the dollar, the pound and the euro.

The report said last week's fluctuations in the value of both the pound and the euro globally translated onto the local market with the two currencies sustaining losses to the cedi on Monday and Tuesday.

It, however, said that before the close of the week, the pound and euro managed to regain their strength.

"The intense pace with which the local currency accelerated against its peers on the inter-bank market, dwindled, as the 0.31 per cent gain it made in just two days was subdued to a weekly loss of 0.10 per cent," the report said.

The Cedi, which commenced the week at year-to-date depreciation of 34.86 per cent and 28.13 per cent against the pound and the euro respectively, recorded 35.56 per cent and 28.79 per cent at the close of last Thursday.

The report said a weakening dollar continued to favour the Ghana Cedi as the local currency managed not only to stabilise against the green back for a majority of the week, but make a slight appreciation of 0.03 per cent.

This reduced its year-to-date depreciation from 18.45 per cent to 18.42 per cent.

The report predicted that the US dollar is expected to weaken even further as increased printing of the currency has increased supply subjecting the greenback to the inevitable forces of supply and demand.

At the close of trading last Thursday, the Ghana Cedi was buying at GH¢1.43p and selling for GH¢1.45p against the dollar.

It was trading between GH¢2.38p and GH¢2.42p to the pound and was going for GH¢2.15p and GH¢2.19p against the Euro. One Ghana Cedi was quoted between 300 and 304 CFA.

Source: GNA