• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home highlights

Currency analysts expect the Cedi to be relatively stable in last quarter of 2021

4 years ago
in highlights, Home, home-news, latest News, Markets
2 min read
0 0
0
90
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Currency analysts expect the Cedi to be relatively stable in last quarter of 2021

The cedi is expected by currency analysts to be relatively stable against the American greenback in the last quarter of 2021.

The anticipation of a relatively stable cedi is despite the expected pressures on the local currency as a result of high demand for the dollar by businesses for imports ahead of the Christmas festivities.

The local currency in the third quarter of this year posted a modest deprecation rate of 1.8% to the dollar, lower than the 2.96% depreciation rate recorded during the same period in 2020.

The 1.8% depreciation is the best performance achieved since 1992.

Senior Economic Analyst at Databank Research, Courage Martey, speaking in an interview on the stability of the cedi in the fourth quarter said, the local currency is well anchored despite some anticipated shocks.

“As we head into the final quarter of 2021, we are quite assured of continued relative stability but with a depreciation that will occur at a controlled or modest pace because already, we have a strong reserve buffer in excess of five months of import cover. And from October we should start to see the tranche disbursement of the $1.5 billion Cocoa Syndicated facility which will strengthen the cedi for the rest of this year. So generally, we are very positive about the cedi.”

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

“We do not expect that this inflow [cocoa syndicated loan] will translate into appreciation in the fourth quarter of this year. However, we think it will likely mitigate any potential shocks on the currency,” he remarked.

There are, however, some expected potential shocks mainly from foreign portfolio reaction to the development in the advanced market where the US and other European Central Banks have decided to begin their asset purchasing programme, starting from later this year.

This Also: Dubai eyes Ghana as next investment frontier

“Now that the interest rate of US treasuries is expected to rise and the implication on our market is that portfolio investors could start repatriating some of their dividends, some of their coupons and even liquidating some of their capital positions. And for the dollars to flow out that will create demand pressures on the foreign exchange market and cause depreciation pressure for the cedi. However, we believe that the inflow from the cocoa syndicated facility to boost the already strong reserves should provide enough buffer to see the cedi through the rest of this year,” he added.

Meanwhile, the cedi, out of the Continent’s top 15 currencies has placed 9th after slipping from its previous position as the 8th best currency on the Continent.

In August, the cedi was ranked 8th among Africa’s top currencies with a depreciation of 1.30% to the US dollar. This was after it had appreciated against the American ‘greenback’ in the first six months of this year.

The Namibian dollar however dislodged the local currency from the 8th position after an improved performance against the American currency in September 2021.

But the cedi is expected to gain some value to the US dollar soon. This is because the first tranche ($750m) of the $1.5 billion Cocoa Syndication Loan will hit the account of the Bank of Ghana this week. It will help reduce the recent pressures on the local currency.

 

Tags: American greenbackCurrency analysts expect Cedi to be relatively stable in last quarter of 2021Databank Research
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.