The Manager of Macroeconomic Research at GCB Bank PLC, Courage Boti, has downplayed concerns over the recent depreciation of the Ghanaian cedi, describing the development as seasonal and expected.
According to him, the sharp demand for dollars in recent weeks driven by importers stocking up ahead of the festive season has put pressure on the local currency.
He noted that this trend is common around this time of the year and is compounded by speculative activities in the foreign exchange market.
“I didn’t expect the cedi to remain at the 10.3 level it reached earlier this year. Currency movements are influenced by seasonal factors, especially around the cocoa season and year-end import demand,” Mr. Boti explained.
He further highlighted that businesses anticipating future volatility often rush to secure foreign currency, which heightens depreciation.
“Those who bought dollars at high rates when the cedi was weaker are now buying more to dilute their losses or stocking up to sell later. This speculation exaggerates the exchange rate movement and does not necessarily reflect economic fundamentals,” he added.
Despite the current pressures, Mr. Boti expressed optimism that policy interventions by the Bank of Ghana would help stabilize the market, assuring that “The stringent measures being rolled out by the central bank will restore sanity in the market.”
The cedi, which had been one of the world’s best-performing currencies earlier this year, has recently come under strain due to increased corporate demand for dollars and investor uncertainty over the sustainability of its stability.
Read Also: Government’s AT–Telecel Merger Plan Faces Doubts from Industry Expert
