Some currency analysts have downplayed fears that the cedi has commenced its losing streak against major trading currencies following two weeks of instability.
The cedi’s performance against the dollar ended last week Friday May 12 ,2017 at GHS4.24 across forex bureaus but as of today Friday May 19,2017 it is selling at GHS4.33 dropping by close to GH0.10 this week.
Citi Business News understands the development follows the high demand for dollars by most companies as they prepare to hold their Annual General Meetings and pay dividends to foreign shareholders.
“It is normal for the cedi to depreciate around this time, as you may know most companies hold their Annual General Meetings (AGM) during this time of year and as a result are made to pay dividends to their foreign shareholders,” General Manager of Treasury at HFC Bank, Joseph Nketsia said.
He further attributed the increase in imports as a contributory factor.
“A lot of business activities are beginning to pick up and as a result there is a lot of import going on”.
He however remained optimistic the central bank is monitoring the situation to ensure the cedi’s performance does not worsen.
“I’m the central bank is also monitoring the developments on the market and then if they have to come to the market to intervene I know they will do that when it starts depreciating at a faster rate,” he noted.
Credit: Citi FM