Cedi maintains stability against Dollar but faces challenges against other hard currencies
The Cedi has exhibited a stable performance against the US Dollar (USD) on the retail market but faced headwinds against other trading currencies, including the Euro and the British Pound (GBP), during the previous week’s trading session, as highlighted by Courage Boti, research lead at GCB Capital.
The interbank market mirrored a similar trend, with the Cedi showing broad stability against the USD but facing a bearish sentiment against other major trading currencies.
Throughout 2023, the Cedi has largely remained range-bound, and Mr Boti anticipates this current stable run to continue leading up to the upcoming Monetary Policy Committee meeting scheduled from Wednesday to Friday, along with the subsequent press conference on Monday, July 24, 2023.
Beyond the month of July, the performance of the Cedi will depend on several key factors that are poised to shape its outlook. External debt restructuring progress will play a pivotal role in determining the Cedi’s trajectory.
Additionally, market observers will closely monitor the outlook derived from the revised fiscal framework, the annual cocoa loan syndication by COCOBOD, and the successful completion of the first review of the International Monetary Fund (IMF) programme. Mr Boti notes that these crucial elements are expected to influence the performance of the Cedi in the coming months.
While the Cedi has demonstrated resilience against the USD, it faces challenges against other significant trading currencies. Market participants are advised to closely monitor developments, paying particular attention to economic indicators and events that will impact the future trajectory of the Cedi. As the global economic landscape evolves, cautious analysis will be essential to gauge the Cedi’s resilience and its ability to navigate the currency market’s intricacies.
