Cedi At A Turning Point

The Ghanaian cedi has broken out of a 15-month trend channel and has appreciated by 2.2% over August 1-10. It has been boosted by a recent influx of foreign exchange associated with loans from multilateral agencies. With further money set to come in, we see scope for continued appreciation to GHS1.4600/US$ over the short term. That said, it could be a choppy ride, dependent on the exact timing of the inflows and the central bank's ability to manage them.

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