The outlook of the cedi is expected to be stable this week despite the near-term outlook remaining a concern.
Many analysts believe the local currency will benefit from the weakening dollar.
The cedi is expected to continue its fine run in the lead-up to the Monetary Policy Committee (MPC) meeting from tomorrow July 19, 2023, and the press conference slated for Monday, July 24.
Beyond July, the local currency’s outlook will hinge on progress with external debt restructuring, the revised fiscal framework, COCOBOD’s annual cocoa loan syndication, and a successful first review of the International Monetary Fund programme.
Cedi remained flat against dollar last week
The local currency remained stable against the dollar last week in the retail market, but depreciated against the pound and the euro as the Ghana Statistical Service reported an unexpected rise in inflation rates.
The cedi ended the week at a mid-rate of 11.74/$ on the retail market, thanks to easing US inflation and $20 million Bulk Oil Distribution Companies FX support. However, the cedi lost 0.99% and 1.17% against the GBP and EUR, respectively.
The interbank market also mimicked a similar trend, with the local unit broadly stable against the dollar but bearish against the other major trading currencies.
The cedi is going for ¢11.00 against the dollar and ¢14.44 and ¢12.37 to the pound and euro respectively on the interbank market.