Cedi posts positive outlook.. as it continues to gain against the dollar

Adnan Adams Mohammed

Ghana’s local currency (cedi) has been upgraded from Ca to Caa3 by international rating agency, Fitch.

The cedi has also been remarked with a stable outlook. On the back of a successful foreign currency restructuring and a continued disbursement from the International Monetary Fund would lead to more gains by the cedi in coming months.

The Ghana cedi gained a favorable 0.43% against the US dollar in the retail market last week. It traded at a mid-rate of ¢11.53 to a US dollar.

Analysts believe the local currency upgrade will improve investor sentiment and strengthen the cedi against the dollar this week as the market reacts favourably to the local currency upgrade.

However , the local currency depreciated against the pound and the euro respectively.

The year-to-date loss of the cedi to the American greenback hovered around 12%.

On the interbank market, the local currency has however depreciated by about 20% to the US dollar. It is currently selling at ¢10.98 to one dollar.