BoG Forex auction, EIB grant to improve cedi depreciation – Report

Forex auction, EIB grant to improve cedi depreciation – Report

Cedi began first half of year with some stability, BoG

Ghana receives grant support from EIB

External factors like inflation to cause further depreciation

The Ghana cedi is expected to continue on its slow recovery as the end of the 2021 approaches, a currency exchange platform, AZA

Read full articleFinance has projected.

According to the platform, this is based on an €82.5m concessional funding package from the European Investment Bank to support Ghana’s health care system as well as interventions from the Bank of Ghana’s forward FX auction.

In a weekly analysis touching on Ghana, the Nairobi-based currency platform said, “the Cedi appreciated marginally against the dollar this week, strengthening to 6.165 from 6.187.”

“With the support grant and ongoing intervention from the Bank of Ghana’s forward FX auctions, we expect the Cedi to continue its slow recovery against the greenback as we approach the end of the year,” it continued.

Meanwhile, the Ghana cedi began this year [2021] with some stability, trading at GH¢5.76 pesewas per US$1, from January through to June.

But recent depreciation of the cedi against the US dollar, in the months of July and August, saw a 2 percent drop in its value thus trading at GH¢6.

This is a result of increasing import charges, high cost of living, fuel price increment among others.