[ad_1]
<! –
->
The Ghanaian cedi has begun to register a marginal appreciation against the dollar in the market.
Audits on the market show that on Thursday, March 14, the local currency appreciated by 5% against the dollar to about 5.60 GH ¢, against 5.90 GH ¢ Tuesday and Wednesday.
The local currency again slightly increased on Friday, March 15, 2019 to close at about 5.56 GH ¢, based on JoyBusiness checks from some of the major banks in the foreign exchange sector.
What caused this sudden turnaround for the cedi?
According to the JoyBusiness commitment from treasurers and currency brokers and even relatives of the Bank of Ghana (BoG), the evolution was largely influenced by the resumption of some dollar injections in dollars by the BoG last week, described by some market players. as significant.
This is after the Bank of Ghana achieved the IMF target in its program, which was to build dollar reserves up to a certain level by the end of December 2018.
The BoG has now crossed the target.
Sources said the market and some investors appeared to have secured badurances from Finance Minister Ken Ofori-Atta, cedis stabilization in two weeks and Parliament's approval of the $ 750 million bridge loan. dollars from Standard Chartered Bank.
This has led some customers to sell dollars. All of these developments would increase the dollar supply in the market, which could help stabilize the cedi in the short term.
Is it sustainable?
This is a million dollar question to which most market observers are struggling to answer.
Some argued that by watching the increase in the Bank of Ghana's dollar supply and other expected inflows, it is likely that the evolution to which we have badisted could continue for some time. However, the structural problems facing the country are leading to increased demand for dollars by businesses and individuals.
This contributed to the permanent depreciation of the last quarter of 2018 and the first quarter of 2019.
Some badysts have argued that if this problem is not resolved, the challenge will persist and may not end soon.
[ad_2]
Source link
