Cedi: Returning To Form

In line with our expectations, the recent run of losses for the Ghanaian cedi have been capped, with the currency having found support just short of our GHS1.4600/US$ target. In our view, the depreciation was In line with our expectations, the recent run of losses for the Ghanaian cedi have been capped, with the currency having found support just short of our GHS1.4600/US$ target. In our view, the depreciation was a lagged response to euro weakness and concomitant US dollar strength. Now that the euro is making a comeback and the dollar is weakening on the flipside, the cedi is clawing back its losses. The currency has appreciated by around 1.4% since mid-July, to trade at GHS1.4350/US$ at one point on August 3.

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