"$2bn Cocoa loan, plus other loans to help stabilise cedi in Q4\u00a0"

" \n $2bn Cocoa loan, plus other loans to help stabilise cedi in Q4\u00a0 \n \n\n \n The cedi\u2019s depreciation against its anchor currency \u2013 the US dollar \u2013 is expected to stabilise in the fourth quarter of this year. \n \n\n \n This anticipation by currency analysts comes on the back of some $2bn foreign exchange inflows from the COCOBOD syndicated loan as well as the $750m loan approved by Parliament last month. \n \n\n \n The COCOBOD syndicated loan for the next cocoa season, is expected to bring in a total foreign inflows of $1.3bn. \n \n\n \n The cedi at close of last month \u2013 July 202 \u2013 is reported to have depreciated by 7% to the dollar, taking the year-to-date depreciation of the cedi to 20.5% on the interbank market. \n \n\n \n The decline in the value of the local currency for last month has been attributed to the high demand for the greenback, coupled with other factors such as weak balance of payments position of he country and liquidating of investments in government bonds. \n \n\n \n According to currency analyst, Courage Martey, the cedi has started the third quarter on a difficult note. \n \n\n \n \u201cThe cedi has also started the third quarter on a pretty difficult note; in the month of July alone, the local currency has lost way over 7% against the US dollar and over 26% on a year-to-date basis [retail market]. That is way very sharp depreciation so far this year, and August [2022] has also started on a similar note on its own set back of weakening of the currency, which is really not good\u201d \n \n\n \n \u201cAnd the situation has also not helped by the fact that the Central Bank [BoG] has reduced the sizes on the bi-weekly auction where the size has been reduced by 50% to $25 million per auction. Given the sizeable level of demand, we have on the market that reduction has widen the demand supply gap\u201d, he remarked. \n \n\n \n He further said that the demand for the dollar which is four times the $25 million allotment is telling on significantly in terms of the rate of depreciation of the cedi. \n \n\n \n For the near-term outlook, Mr. Martey pointed out that \u201cwe think it remains bearish amid the elevated month and limited sources of supply.\u201d \n \n\n \n \u201cAnd talking of supply, we are expecting that by the 4 th quarter, we should see some two billion dollars coming through. This $2 billion is composed of the $750 million facility by Parliament. We are hopeful that government will finalise the term of credit with the lenders and settle on a favorable term and allow the disbursements. Then the COCOBOD $1.3 billion syndicated loan has been approved by Parliament, and we expect that to come through in tranches in the 4 th quarter,\u201d he added. \n "

"$2bn Cocoa loan, plus other loans to help stabilise cedi in Q4\u00a0"

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