This comes despite the depreciation of the cedi in relation to the three major trading currencies.

The perennial depreciation of the cedi has among others, impacted the planning of businesses especially by importers.

But the currency analysts say they are optimistic that recent developments in the economy will turnaround developments on the foreign exchange market.

For the CEO of the Policy Initiative for Economic Development, Daniel Amarteye Anim, government’s plans to issue a Eurobond within the next few months, should increase the supply of dollars to meet potential rise in demand.

“It is the high appetite for government borrowing from the international market to support infrastructural development. So whilst the government raises more bonds, we will have more inflows into the country. As we have inflows, our reserves increases and what it means is that the supply of foreign currency in the local economy will increase and that may also affect the performance of the cedi,” he explained.

His claims are corroborated by the General Manager of Treasury at HFC Bank, Joseph Nketsia.

He believes a reduction in demand for dollars by large importers by the end of March, should bring some respite to the high demand for the currency.

“Since the beginning of January, there has been demand for foreign currencies for goods in connection with the Christmas activities. Now that they are done selling, they have to pay for the goods so they are converting the cedi into foreign currency and transporting them to their suppliers but by the end of the month we anticipate that it will be stable” he said.

Citi Business News’ analysis on the interbank foreign exchange market shows that beginning this year; the cedi had depreciated by some 21 pesewas against the dollar.

A dollar could be sold to you at 4 cedis 42 pesewas, up from the 4 cedis 21 pesewas a year ago.

Similarly, the local currency started the year with a 19 percent and 24 percent depreciation against the British Pound and the Euro respectively.

The cedi however begun this month with a marginal rise in depreciation against the dollar of about 3 percent.

Even though it recorded marginal stability on a year on year basis to the British Pound and Euro, the currency depreciated by 17 and 16 percent, to the British Pound and Euro respectively at the beginning of this month.

As at Wednesday morning (14^th February 2018), the cedi is trading at 4 cedis 42 pesewas to a dollar on the interbank foreign exchange market.

Forecasting the cedi’s performance against major currencies going forward, both Joseph Nketsia and Daniel Amarteye Anim were hopeful the cedi will regain its stability by the end of the first quarter.

“We are not expecting the dollar to go beyond 4cedis, 43 pesewas by 31^st March. So it will be relatively stable”.

“At the end of the first quarter, there will be fair stability. Moving into the second quarter, I expect the cedi to perform better” they stated.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post Cedi to stabilise by end of March 2018 appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is the prediction of the Economist Intelligence Unit, a specialist publisher in the UK.

[contextly_sidebar id=”HmLLc3YeywQ3Li5wTzUbCkGycZ4Pkq6T”]The Economist Intelligent Unit, which has operated for about 60 years, also warned that the local currency may suffer some external pressures that may cause the cedi to depreciate by next year.

According to the figures captured in its latest report, the cedi may suffer some depreciation by end of this year—2018.

The report cited the tighter monetary policy in the US from the latter part of this year into next year, and the renewal of political uncertainties associated with Ghana’s 2020 elections, as the basis for the prediction.

As at this morning, January 3, 2018, the dollar was trading at 4 cedis 42 pesewas to the cedi on the interbank foreign exchange market.

This is slightly higher compared to the 4 cedis 35 pesewas average recorded in 2017.

But for the early part of this year, the Unit is hopeful that revenue from Ghana’s oil and gas sector coupled with the confidence reposed with the country’s continuous ties with the International Monetary Fund (IMF) will support the stability of the cedi.

Meanwhile, the Unit is hoping that Ghana’s inflation would reduce in relation to the Bank of Ghana’s target of 8 percent plus or minus 2, this year.

This, the report attributes to tighter fiscal policy compared with the profligacy in the previous five years, which inched inflation to about 20 percent between 2015 and 2016.

On Ghana’s programme with the IMF, the report stated that key priorities for the Fund in its dealings with Ghana before it ends in April 2019, will remain to enforce fiscal consolidation, as well as the restructuring of the debt-ridden, state-dominated energy sector, and efforts to strengthen the local banking sector.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

The post Cedi to hit GHs6 to a dollar by 2022 – Economist Intelligence Unit appeared first on Citi 97.3 FM - Relevant Radio. Always.

The cedi which normally depreciates at a fast rate around the festive season has since the 23^rd of November remained at 4 cedis 41 pesewas on the interbank foreign exchange market and between 4 cedis 48 pesewas and 4 cedis 65 pesewas at local forex bureaus.

Speaking to Citi Business News on the matter , General Manager of Treasury at HFC , Joseph Nkestia attributed the development to some interventions put in place by the Central Bank as well activities of some companies resulting in the adequate availability of dollars.

“The cedi has enjoyed some stability in the past week following interventions by the Central Bank; so unlike the previous years where around this time you see the cedi depreciating at a very fast rate, this year the cedis performance has been better”.

Mr. Nketsia was of the view that there are currently enough dollars in the system resulting in the stability.

“Apart from the Central Bank’s intervention there are other sources of funding coming through, for instance some companies are doing rights to issue, some of the investors outside the country are buying shares using the US dollar. So the supply of US dollar has increased relatively to the demand for the hard currency that is why we are seeing stability in the cedi.

He added that the stability should continue until the end of the year.

“We expect that that stability will increase to the end of the year”.

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By: Anita Arthur/citibusinessnews.com/Ghana

The post Cedi stabilises amidst festive season blues appeared first on Citi 97.3 FM - Relevant Radio. Always.

Indications are that the Cedi may be set for a period of relative stability after significant depreciation on the interbank foreign exchange market and across forex bureaus in the country in 2017.

But Mr. Thompson said he expected “a huge dip” when the $2.25 billion bond run out.

[contextly_sidebar id=”PiDAHVtEZ33GzyHbXucnEfHSjFQGY1qC”]Furthermore, he said basing the strength of the economy on the  the strength of the cedi would be misplaced.

“The cedi does not reflect the true state of the Ghanaian economy and every time the cedi depreciates, we take our savings to prop it up. But how long can we continue to do that? The cedi must be allowed to reflect the true state of the economy.”

Government has indicated its resolve to ride on the back of its ‘Planting for Food and Jobs’ programme make Ghana more self-sufficient.

Mr. Thompson was speaking on Eyewitness News, after the President had launched the ‘Planting for Food and Jobs’ programme, where he stressed that, efforts must be directed at Agriculture if Ghana was to see any meaningful progress.

Farmers will still suffer

But the standing of the cedi means local consumers are likely to neglect local farmers and their produce, Mr. Thompson argued.

He explained that “the cedi at the rate at which it is, means our products produced [locally] are not competitive so people will still continue to consume imports and our farmers will suffer. You go to the north and we have farmers whose rice they can’t sell because it is cheaper to import from Thailand.”

Thus, Mr. Thompson opined that, “for us to get where we want to be, the industries based on imports would have to collapse and new ones based on exports will rise. It’s basic, but we keep putting our head in the sand.”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post $2.25bn bond a half-measure for falling cedi – Ken Thompson appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, Dr. Bawumia prior to the New Patriotic Party’s victory in the December 7 polls accused the Mahama government of ignoring solutions he proffered to Ghana’s ailing economy and the cedi adding that now is the time to make a difference.

“…Before he became the Vice President, he had engaged Ghanaians both home and abroad as well as the international community on a series of lectures largely about the economy and what he and his party had perceived was not going well. And the impression we all got including many Ghanaians was that they had the solutions to the challenges we were facing. So if on the basis of these arguments persuasively, he and his boss, the President, are now in charge of the affairs of this country, then logically we have every reason to expect that he would be able to arrest the cedi as he has said on numerous occasions,” he argued on Citi FM’s News analysis programme, The Big Issue on Saturday.

[contextly_sidebar id=”v8OgicRsOaQXPYaWUoGVpQbVwmTC7Bx6″]There have been several complaints from some financial analysts concerning the health of the cedi which has been depreciating in the last few months.

Figures available to Citi News from the Bank of Ghana as well as some forex bureau across the country show that the cedi has depreciated by about 5.4 percent between January and February this year on the interbank forex exchange market.

Some financial observers including the GN Research have also described the cedi as “the worst performing currency on the African continent” in recent times.

The Minister Finance presented the 2017 budget statement to Parliament last week, however, the Minority in Parliament claimed that the document does not have a clear roadmap in stabilizing the cedi.

Mr. Apaak explained that although they [NDC] recognize the fundamental issues affecting the Ghanaian economy as well as implications on the performance of the cedi, the NPP disregarded their explanations when they [NPP] were in opposition.

“That is not to say that we don’t recognize…that there were some fundamental issues that go to the core and foundation of our economy which has implications on how well our currency performs vis-à-vis other global currencies particularly the dollar. We had always explained that we are largely an import dependent country, we don’t produce much of what we consume, we are also affected by global turbulence in terms of price vacillations. We had made all these arguments but they [NPP] said no, and that it was as a result of incompetence. Well we now have a competent team in place so arrest the cedi. That is the argument we are making,” he added.

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By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post We expect Bawumia to ‘arrest depreciating cedi’ – Apaak appeared first on Citi 97.3 FM - Relevant Radio. Always.

He asserted that, the government did indeed proposed clear policies, anchored in fiscal discipline, to tackle the depreciation of the Cedi, contrary to the opinion of some critics.

[contextly_sidebar id=”e41E0tAj9gn0fVqSQSRgxmBZYObg84LJ”]The cedi commenced 2017 at GHc 4.2 on the interbank foreign exchange market, but figures from the Bank of Ghana show that the cedi depreciated by about 5.4 percent between January and February 2017 on the interbank forex exchange market, and as much as 6.72 percent in the same period across forex bureaus.

Pressure on Cedi at year’s turn

Not to make light of the situation, Mr. Oppong-Nkrumah, in an interview with Citi News‘ Duke Mensah Opoku, noted that, per the Bank of Ghana’s currency monitoring report from 2000 to 2016, the Cedi experiences an average depreciation of about 5 percent indicating pressure on the Cedi at the beginning of the year.

“There is pressure on the Cedi at this time of the onset of the year, which stems from foreign companies mobilizing dollars to repatriate abroad coupled with people mobilizing up dollars for importation, he explained.

Policies will keep foreign exchange inward

Whilst noting that the situation with the Cedi was nothing extraordinary, he stressed that government had outlined clear policies to alleviate the situation.

For one, he said government plans to put in place policies “that will strengthen private inward remittance flows which will develop financial products that will encourage remittance flows into investments.”

“What that means is that, government is putting in place measures to make it attractive for people who otherwise would not bring their currency ordinarily into Ghana, to bring their currency into Ghana,” the MP explained.

“We are also looking at reducing the foreign exchange outflows with respect to trade in services such as freight and insurance expenses on imported goods, because very often, people have to send dollars abroad as part of services associated with imports. We are looking at taking these ones away so that people don’t have to repatriate some of those monies abroad.”

“So it is not true that the budget doesn’t say anything about the Cedi or that there are no plans. We have clear policy outlines and there is work being done. My comment on the Floor of the House has been that, for our own political exigencies, we shouldn’t send panic into the system,” Mr. Oppong Nkrumah stated.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Budget gave clear policy to tackle falling Cedi – Oppong-Nkrumah appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him due to governments good economic policies, the Ghanaian currency, the cedi, has become one of the best performing currencies in Africa.

Speaking at the launch of the Atiwa East and West Campaign in Ayinam in the Eastern Region, President Mahama said his track-record in managing the economy clearly shows he is a better option for Ghanaians in this election.

He called on the electorates not to buy into what he called, negative propaganda by his political opponents who prefer to preach doom about the economy.

“When I came to power there were three major problems, the first was the economy, it was unstable. Besides that was the power crisis and the third one was our social economic infrastructure which has to do with roads and schools, and for the last three years my attention has been on these three things. God has been good to us.”

“I am not saying that our economy is out of the woods but this year the Cedi that was depreciating is not the best performing currency in the whole of Africa. With regards to the power crisis, I could have blamed others for that but the crisis is because Ghana’s economy is growing,” he added.

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By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Ghana cedi is best performing currency in Africa – Mahama appeared first on Citi 97.3 FM - Relevant Radio. Always.