The Ghana Bankers Association has told Citi Business News it is confident the cedi will stabilize before close of year despite the current slide against the dollar and other major foreign currencies.
[contextly_sidebar id=”iQXbziQJ046A2sHEeVHqHKTxpTa0e751″]There have been mixed projections about the fate of the cedi against the major foreign currencies.
This is after the cedi bounced back around July 2015, from weeks of decline at the beginning of the year -2015, after the Bank of Ghana started pumping between 20 to 50 million dollars daily into the economy to manage the supply of the currency.
But the cedi is currently not faring any better against the dollar and other trading currencies, as it continues to lose grounds and depreciate.
On August 25,2015 on the interbank foreign exchange market, the US dollar went up by 2 pesewas and sold at 4 cedis, 5 pesewas, the South African Rand gained a pesewa and also sold at 31 pesewas.
But the Euro lost 4 pesewas and sold at 4 cedis 64 pesewas.
Meanwhile the British pound sold at 6 cedis , 35 pesewas, the Chinese Yuan sold at 63 pesewas.
“It’s been mixed actually , first half of the year we say the rapid depreciation of the currency , it strengthened somewhere a few weeks back , again its started its weakening process. That’s a reflection of the demand and supply conditions in the market”, the President of the bankers association and MD of GCB Simon Dornoo said.
He expressed confidence the expected inflows of forex expected from the Eurobond, Cocoa Syndicated loan and IMF can help stabilize the cedi.
“Anytime there is good supply it definitely feeds through the market and the market will factor that into the price the currency will be trading. It’s good news to have enhanced supply of FX into the market which should either stabilize or strengthen the currency”, he stated.
By: Rabiu Alhassan/citifmonline.com/Ghana