The cedi is expected to sell at GHC 4 to a Dollar by December 2016.
This is according to an Accra-published report by GN Research.
“Going forward, we expect the revamp in world crude oil prices, inflows from the US$750 million Eurobond, US$1.8 billion cocoa syndicated loan, US$116.2 million third tranche support from the IMF and the ongoing US$50 million USD-denominated domestic bond issuance among others, to offer some respite to the cedi ahead of the December polls.”
Comparing the trend from previous election years to this year the report added that it is estimated that the cedi will depreciate marginally by some 0.65% to the US dollar, but appreciate by some 2.20% and 0.64% to the sterling and euro respectively by year-end.
Currently the dollar is being sold at GHC 3.9p per a dollar, whiles the euro and pound are being sold at GHC 4.3p and GHC 4.8p respectively.
The estimated depreciation of the cedi means that commodities and services will be more expensive during the election year.
The report further stated that the cedi did not depreciate against major trading currencies in the third quarter of 2016.
“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.”
“In comparison with other African currencies, the cedi performed better than the Nigerian naira, Rwandan franc, Namibian dollars, Tunisian dinar and the Zambian kwacha during the third quarter of 2016 as prices of major exporting commodities traded lower. Nevertheless, the Mauritius rupee, Moroccan dirham, Botswana pula, South African rand and Tanzanian shilling posted better results than the Ghana cedi,” the report added.