Ghana's cedi eyes new lows

Ghana's cedi could weaken next week on increased dollar demand while other currencies are likely to be stable.

GHANA: The cedi hit new lows this week and could remain under pressure as dollar demand continued to outstrip supply. The USD/GHS broke the 4.0 resistance on Tuesday, and traded at 4.0100-4,0300 at 1030 GMT from 3.9350-3.9750 last Thursday.

"Not much inflows are anticipated within the remaining parts of this week and next week and for this reason the pair will continue to trade in the same direction, resulting in further losses for the GHS," Kwabena Yeboah of the Accra-based Dortis Research said.

The central bank governor has blamed the continued weakening of the cedi partly on speculative foreign exchange activities.