BoG’s trading platform : cedi hits ¢5.99; forex bureaux sell at ¢6.01 plus
The Ghanaian currency is only one peso to reach ¢ 6 to the dollar.
According to the official trading platform of the Bank of Ghana, the dollar is now selling at 5.99 ¢, which is almost 1% appreciation of the cedi.
However, forex bureaus sell the local currency at .01 6.01 plus. Some actually started selling the dollar for 00 6.00 about a month ago.
Demand for the dollar at this time of year stimulated the depreciation of the cedi against the world’s most important currency.
Some multinational companies buy dollars to repatriate dividends to their shareholders. At the same time, some non-resident investors also receive dividends from their investments in largely public listed companies.
On the other hand, the opening of the world economy, which stimulates aggregate supply and demand, as well as imports and exports, also stimulates demand for the US dollar.
This is despite the intervention of the Bank of Ghana in the two-week Forex Forward Auction, which helped supply dollars to the market to meet growing demand. The Bank of Ghana may need to step up its game to increase the supply of the dollar in the market.
Cedi forecasts the end of the year at ¢ 6.14 and .3 6.32.
Fitch Solutions, the rating agency’s research division, Fitch and Databank Research forecast a slightly different CEDI exchange rate against the dollar by the end of the year.
While Fitch Solutions forecasts 6.32 pesos per dollar by the end of the year, Databank Research forecasts .1 6.14 pesos, about 3 percentage points of depreciation.
Fitch attributes the rebound to the global economy, which will stimulate economic activity, as a justification behind the CEDI rate at the end of the year of 6.32 ¢, just over 4% depreciation.
The data bank, on the other hand, said the recent pressure caused by the portfolio had broken its previous optimism. However, he estimates that cedi should remain backed by gross foreign exchange reserves of about $ 10.99 billion.
“We expect the annual international syndicated cocoa loan to provide an additional buffer in the fourth quarter of 2021 to maintain cedi’s stability. The expected payment of special drawing rights (SDRs) to the IMF also portends gross foreign exchange reserves and is set in the second half of 2021.
Cedi depreciated only 0.6% against the dollar for 7 months of 2021-BoG
The Bank of Ghana said the Ghanaian Cedi had lost a paltry 0.6% against the US dollar.
According to the Central Bank, cedi registered 0.5% profit in April 2021, the same as in March 2021 and 0.2% increase in May 2021.
In June 2021, however, it did not register any change in the value of the US dollar, but lost 0.6% in the value of the world’s most important currency.