Cedi expected to post mixed-performance this week due to inflationary pressures

This was largely due to the marginal increase in inflation which is compelling investors to think twice about investments in cedi denominated assets.

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The Ghana cedi is expected to post a mixed-performance this week as a widening inflation differential may pose depreciatory pressures.

This is because investors are seeking investments in dollar denominated or fixed assets.

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The Ghana cedi remained stable against the US dollar last week on the retail market with a mid-rate of ¢11.43 at the close of trading last Friday, August 11, 2023. This kept its year-to-date at about -11.0% to the American greenback.

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The local currency, however, lost marginally (week-on-week) against the dollar on the interbank market, bringing its year-to-date loss to about 21.00%. The unit also slid slightly against the the GBP (-0.05% w/w) on the interbank market but gained (0.21% w/w) vs the euro.

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This was largely due to the marginal increase in inflation which is compelling investors to think twice about investments in cedi denominated assets.

Additionally, the US inflation cooled at 3.2% year-on-year from 3.00% in June 2023, below the consensus estimate of 3.3%.

This caused the US dollar index to inch up 0.68% week-on-week

Source: BusinessweekGhana

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