Ghana’s cedi currency strengthened further on Tuesday with year-to-date depreciation standing at 2.71 percent from the previous 3.29 percent, the Bank of Ghana announced on Wednesday.

The currency depreciated earlier by 8.8 percent on March 8, and 5.0 percent on March 23, as payments for imports before and during the yuletide season of 2016 brought enormous pressure on the cedi in the foreign exchange market.

“The foreign exchange market witnessed increased pressures in the year to early March, partly attributed to a strengthening U.S. dollar, seasonal demand factors and speculative activities,” Governor of the Bank of Ghana Abdul-Nashiru Issahaku explained.

He added that the observed pressures “have significantly eased in recent weeks on the back of renewed confidence in the economy and improved foreign exchange inflows.”

The local currency, which was going for 3.90 to the dollar late last year, had tumbled cumulatively by 8.0 percent by late February, exchanging at around 4.65 to the dollar, and plunging further down to a cumulative depreciation of 8.8 percent by March 8.

Analysts still entertain fears the cedi might not do exceedingly well in 2017 as the government begins to roll out programs and projects that might increase the demand for imports. Enditem

Source: Xinhua/