The cedi strengthened by 0.43% against the dollar last week, with a favorable outlook.
In the retail market last week, the Ghana cedi experienced a favorable growth of 0.43% against the US dollar. Trading at a mid-rate of ¢11.73 per dollar, the local currency showcased strength against the greenback. However, it faced depreciation when compared to the pound and the euro.
The year-to-date loss of the cedi against the US dollar stood at approximately 12%. Conversely, on the interbank market, the cedi depreciated by around 20% to the US dollar, currently being sold at ¢10.98 per dollar.
On June 6, 2023, credit rating agency Fitch upgraded Ghana’s Local Currency (LC) rating from Ca to Caa3. This improvement in the local currency rating is anticipated to have a positive impact on investor sentiment and strengthen the cedi against the dollar during the current week. Fitch maintained a stable outlook on the local currency, expecting further upgrades in the LC as successful foreign currency restructuring and continued disbursement from the International Monetary Fund are anticipated.
The upgrade in the local currency rating signifies an optimistic outlook for the Ghana cedi and the market is expected to respond favorably. Analysts believe that the LC upgrade will enhance investor confidence, leading to a potential strengthening of the cedi against the dollar.
Source – myjoyonline.com
