Business News of Wednesday, 15 March 2017
Two financial analysts have predicted the Ghanaian cedi, which has been depreciating against major trading currencies, will stabilise by the end of the first quarter of the year.
The cedi has in the last few days seen a marginal appreciation against the US dollar and currently sells at GHC4.30 dollars to a dollar.
Fiscal slippages occasioned by over spending during the 2016 elections, imports during the last Christmas festivities and repatriation of profit by multinationals have been blamed for the cedis’ fall in value.
Economist courage Kinsley Martey says the seeming stability will continue to the end of the year saying, “As we near the end of the massive repatriation period and the budget has started been implemented, I for see a seeming stability that will extend to the end of the year. This is more like a correction in the value of the cedi”.
Senior lecturer at the University of Ghana Business School, Dr. Lord Mensah also said the current rate of depreciation of the cedi is not abnormal.
He said: “This is a country where anytime the cedi shakes itself there is a rescue from the central bank, and especially with a new administration, I can presume that by the time we end the first quarter, the cedi will find its level”.