Cedi gains 31 pesewas to dollar since January 1

The impressive performance of the cedi is expected to continue till at least the end of the first quarter of this year.

Since the beginning of the year, it has gained almost 31 pesewas to the US dollar as it is selling at GH¢5.44 cedis to a dollar at the forex bureau. This is equivalent to about 3.8% appreciation.

On the interbank forex market, the cedi is going for GH¢5.36 to one US dollar.

“Overall the cedi appears to be on favorable grounds for at least the first quarter of the year”, some analysts asserted.

The local currency appears to benefiting from market developments including the Bi-weekly Forex Forward Auctions which has improved sentiments on the market.

The Bank of Ghana’s spot market forex sales has contributed to calm the spot market trading which hitherto was under huge demand.

Analysts have also attributed significant interest from offshore investors, who have started placing bids on the domestic bond market. This foreign portfolio inflows have offered lots of support

The huge oversubscription of the 2020 Eurobond is also expected to bring in significant foreign inflows and strengthen the local currency further.

Databank Research had projected a decline of 8.60% ± 1.50% in value to the US dollar by the end of 2020. This will be obviously lower than the 12.9% depreciation to the American currency in 2019.

Per the projections, the cedi will hover around GH¢6.05 ± GH¢0.10 by 31 December, 2020.

Trading Economics had also projected that the cedi will inch up to GHS5.80 to a dollar at the end quarter one 2020 and then move to GH¢5.90 in the second quarter of 2020. It will subsequently surged to GH¢6.01 in quarter three and GH¢6.11 in quarter four.

Meanwhile, you will need GH¢5.44 pesewas to buy a US dollar at the forex bureau as against GH¢5.75 pesewas at the end of last year.