Cedi outlook weak

The research department of Databank Group is predicting a weaker Ghana Cedi for the rest of the year.

It says the country’s current and capital accounts situation pose a threat to the local currency going forward.

Earlier the research department of the investment bank had expected the Ghana Cedi to depreciate by plus or minus 9.0 percent to the US Dollar this year.

However, the local currency had already exceeded the 10 percent depreciation mark with only about four months more to end the year.

Speaking to XYZ BUSINESS, Head of Research of Databank Group, Sampson Akligoh said the outlook of the Ghana Cedi does not look good.

“Earlier we expected the Cedi to depreciate by plus or minus 9 percent clearly we were expecting some level of depreciation in line with our fundamentals of our external accounts. We should not ideally expect our currency to be stronger than what it is now if you look at developments in our external accounts.”

He added that the recent issue of the sovereign bond plus other government securities will not necessarily shore up the value of the local currency to the US Dollar.

You will presently need 2.0 Cedis 4 pesewas to buy a US Dollar on the forex market.