Cedi could come under pressure by end of year – Expert

Group Head of Economic Research at Ecobank, Angus Downie, has warned that the Ghana cedi could come under serious pressure again in the next few weeks.

Mr. Downie based his prediction on moves by companies to restock for Christmas and as well as other developments on the world market.  

The local currency over the past few weeks seen some marginal appreciation against the dollar.

It is currently trading at around 3 Ghana cedis 10 pessewas among banks, from a rate of almost 4 Ghana cedis to a dollar a few weeks ago.

“From today onwards we are going to see demand by importers and the trading community because as they gear up for Christmas they will want to receive their goods well before Christmas so that they can get them into the market and consumers can buy them”, Mr Downie said.

He adds that fall in the price of Brent Crude on the international market could also affect the cedi sudden rise.

Also, predictions by ratings agency Fitch and other economists point to the fact that the cedi could start declining in value again by January next year. 

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