General News of Saturday, 16 March 2019
Key financial institution and analyst on emerging markets say rainow de Ghana cedi turn one of de cheapest currencies for Africa dis year.
Renaissance Capital (RenCap), give hint sey despite Ghana get current account wey FDI dey cover, den double-digit interest rates, real effective exchange rate model from RenCap dey show say de cedi be one of de cheapest for Africa.
Here be what de leading emerging den frontier markets investment bank, RenCap put out as dema findings for twitter.
Bloomberg reports reveal say, de cedi depreciate by 2.9 percent to a record low of 5.86 per dollar dis Tuesday, dat dey represent 15 percent drop for just de first quarter of 2019.
Strategist for Renaissance Capital, London, Gregory Smith talk say “confidence for Ghana inside drop small in 2019 compared to oda Africa sovereigns.”
“Wey investors make worried say despite Ghana en recent good record plus fiscal discipline, di country fit mess up over de next year as IMF program dey end wey 2020 elections dey close” Smith add.
Average forecast by Bloomberg Financial analysts say despite dis cedi issue, sometimes Ghana get economic growth potential as gross domestic product go expand 6.6 percent dis year, just sey revenue collection dey low compared to dema peers.
President Nana Akufo-Addo last month reveal say he make weak sake of how de Ghana cedi dey lose value nu, wey dem go try arrest am soonest.
Ghana Finance Minister, Ken Ofori-Atta describe de reports say e no be fair say RenCap go describe de Ghana cedi be one of de cheapest for Africa.
Esan give assurance say de cedi go bounce back in two weeks where e go start dey make stable again after dem secure Eurobond den take reverse de fall.
#Ghana‘s currency in the last few minutes has just become the cheapest in Africa – (at GHS5.745/$) – based on our real effective exchange rate model. Despite a current account covered by FDI and double-digit interest rates #cedi pic.twitter.com/SgnmUyM30X
— Charlie Robertson (@RencapMan) March 12, 2019