Cedi has finally recorded sustained appreciation against major international currencies including the United States of America dollar which is currently trading at around GH4.36 on the interbank market.
This is the first time the local currency has sustained its appreciation against the U.S. dollar especially, since the first week of January.
Analysts are attributing the cedi’s performance to the sudden drop in demand by businesses for U.S dollar to support imports, active return by offshore investors in the country’s local bonds and positive respond to measures outlined in the 2017 budget.
Other market watchers have argued that with the expectation that the cedi would be appreciating against the major international currebcies, it might be good to wait and see how things would look like before they react.
President of Association of Financial Market operators, an association of bank treasurers and currency dealers, Ama Ghartey, tells JOYBUSINESS that if the recent policy measures are sustained on the fiscal and monetary side, then the cedi’s appreciation could last for a while longer.
Analysts say if the trend continuous, it could lead to further reduction in the price of petroleum products, utility tariffs, transport fares and the cost of doing business in the country.
The cedi since the beginning of this year has appreciated against the U.S dollar by a little over three percent.