The cedis sustained appreciation against the U.S dollar may not be ending anytime soon as the local currency is still making some gains on the inter-bank against the dollar. The cedi was sold at GH¢4.16 among commercial banks Wednesday which is the local currency’s best performance against the U.S dollar on the last trading day in December 2016.
The performance puts the cedi’s appreciation against the dollar since the beginning of this year at around 0.41 percent.
This is the first time that Ghana has witnessed such sustained appreciation against the dollar in the first four months of this year.
Analysts are attributing the record performance to the $2.2 billion inflows from the four separate bonds issued last Friday, with offshore investors bringing in more than 90 percent of the funds.
JOYBUSINESS is learning US-based institutional investor; Franklin Templeton took a substantial portion of the bonds that were sold last March 30, 2017.
The cedi was sold in the first week of March 2016 at around Gh¢4.80 but has appreciated to GH¢4.16.
The development if sustained could impact positively on interest payments, cost of living, and price of petroleum products.
Analysts say the current good run could be sustained till the August this year when business start demanding dollars again to finance imports for Christmas.