Cedi Set To Consolidate Gains

Ghana’s cedi is expected to strengthen further this week due to Central Bank support as the currency stages a recovery from a near 20 percent slump in the first half of the year.

This follows renewed Central Bank support and extra inflows from offshore investors buying bonds on the secondary market and traders.

The local unit has rallied 1.33 percent versus the dollar this week to 1.8920 on improved dollar supply from the Central Bank and mine operators.

Traders said there were signs of continued Central Bank support next week to meet growing dollar demand by local firms for their end-of-year seasonal import orders.

“The Central Bank has been visibly supporting the market. We started seeing some offshore action for secondary bonds and we believe this will provide extra inflows to support the local unit next week,” Stanbic Ghana trader Chris Nettey said.

Barclays Bank trader, Jacob Brobbey said the cedi could firm against the dollar below the 1.8900 levels next week.

“We expect the key 1.8900 support to hold this week but may give way next week if the Central Bank continues to offer support to the market,” Brobbey said.