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Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd.
Despite a modest pressure amid moderated foreign exchange supply in the past weeks, the Ghana cedi is expected to rebound over the next two weeks.
This is largely due to the US$385 million disbursement from the International Monetary Fund. T
he local currency is expected to stabilise within the GH¢11.39 -GH¢11.45 range. Databank Research attributed the past weeks depreciation to seasonal demand.
“We attribute this flow-driven moderation partly to year-end unwinding of demand positions; nonetheless, our analysis indicates that the cedi is trading at fair value, exhibiting low deviation from Real Effective Exchange Rate (REER) benchmarks and signalling no material over- or undervaluation”, said Databank Research.
The local currency shed modest gains against the three major pairs over the past two weeks across both the wholesale and retail markets.
Source: newsthemegh.com
