Analyst wonders whether Cedi’s resurgence is sustainable beyond the elections

Some analysts have wondered whether or not the Cedi’s resurgence will be sustainable beyond the general elections.

For instance, the Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye noted that the recent cedi appreciation is due to deliberate intervention by the Bank of Ghana (BoG) ahead of the election.

“It’s got nothing to do with improved economic fundamentals,” he said.

He expresses the view that “The real test will come after the election.”

https://t.co/FwLOb5z5VK. Recent cedi appreciation is due to deliberate intervention by BoG ahead of the election. It’s got nothing to do with improved economic fundamentals. The real test will come after the election.

— J. K. Kwakye (@JohnKwabenaKwa1) December 5, 2024

The Cedi declined steeply from 2021 reaching 17.

A month to the election, Dr Kwakye notes that it has sharply appreciated to below 15 due to BoG intervention.

“But why now? And what is going to happen after the election? Or is it a matter of seek ‘ye’ first election victory and all other things will be yours?”

As of Thursday, December 5, the Cedi was buying at 14. 9125 to a Dollar and selling at 14.9275, per the Bank of Ghana rate.

With the Pound, it buys at 18.9464  and sells at 18.9668.  With the Euro, it buys 15.6984 and sells at 15.7125.

These rates represent some marginal gains made by the local currency against the major trading ones.

It Wednesday, December 4 it was buying at 15.1074 to a dollar and selling at 15.1226.

 

 

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