Cedi performance unpredictable, stability may continue – Analyst

A lead researcher at GCB Capital and a Currency Analyst, Courage Boti, has noted that the cedi may see some stability in the coming weeks. He noted that this may continue as the Bank of Ghana’s rate may become the base rate for exchange. The cedi is currently selling at GH¢13.50 at various forex bureaus in the country. “I expect that this trend could continue until we get to the ¢13 levels and then that is when you will receive some sense of stability because the Bank of Ghana rate would become the floor or the lowest level. The thing really is that you don’t want to see some volatility. I guess it might fall to the interbank rate now [¢13.001] and stabilize around that level,” he is quoted by myjoyonline.com. The analyst also noted that it would be difficult to predict due to its performance in recent times. The cedi depreciated by more than 50% in the past few weeks. “I think it is quite unpredictable because we are still not out of the wounds yet. I think we are doing about 50% depreciation now and I see the cedi ending the year around that level. It shouldn’t be significantly different from the ¢13, the ¢13.5 levels by end of the year as things stand. That is for me to say that there could be some more appreciation to come in the next few weeks before stability,” he stated. “So, if there is a reversal in trend, it should go back to 13.50 as things stand now. But I must add cautiously that the trends and market dynamics are still very uncertain and it is very difficult to pinpoint the rate at the cedi would end of the year,” he added. Watch the latest episode of BizTech below: SSD/FNOQ