The Ghana cedi is expected to show stability in the near term, buoyed by Moody’s recent upgrade of Ghana’s credit rating and an anticipated inflow of US$360 million from the International Monetary Fund. However, seasonal demand pressures are likely to lead to a weakening of the cedi this week.
Last week, the cedi exhibited mixed performance against major currencies. It faced a 1.01% week-on-week decline against the US dollar, primarily due to increased demand from the manufacturing and energy sectors. In contrast, the cedi appreciated by 0.35% against the British pound, following signals of a potential aggressive policy rate cut in the UK.
Additionally, the local currency strengthened by 1.27% against the euro, as lower-than-expected inflation figures in France and Spain suggested a possible rate cut from the European Central Bank during its upcoming Monetary Policy Committee Meeting.
Year-to-date, the cedi has depreciated approximately 25% against the US dollar in the retail market, currently trading at GH¢16.40 to one US dollar. According to the World Bank’s October 2024 Africa Pulse Report, the cedi is among the worst-performing currencies in Sub-Saharan Africa this year, having lost around 24% of its value against the dollar, ranking as the fourth weakest currency in the region. South Sudan’s pound, Ethiopia’s birr, and Nigeria’s naira are currently the worst performers in Sub-Saharan Africa for 2024.
Source: DEW360.NET
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