Cedi To Sell At Ghc4.00 Per Dollar By Year End

Amid many speculations of a possible fall of the cedi in the third quarter of 2016, the domestic currency stood its grounds against the major trading currencies.

The cedi recorded a marginal cumulative depreciation of 0.66% and 1.56% to the US dollar and euro respectively within the third quarter of 2016 (Q32016). However, the cedi posted some gains of 2.04% against the sterling in Q32016.

This puts the Year-to-Date (YTD) depreciation of the cedi at 4.65% to the US dollar, 7.8% to the euro and a YTD appreciation of 8.27% to the British Pound.

Arguably, this was one of the best quarterly performance of the cedi in recent years, and it succeeded in restoring confidence in the domestic currency ahead of the upcoming elections (See Table 1 for details).

Unlike the preceding quarter, the stability in the cedi reduced the pressure on prices of goods and services and pushed consumer price inflation to 16.9% in August, 2016.