BoG set to resume daily supply of $20m to consolidate cedi gains

The cedi’s marginal depreciation over the past four days is being attributed to limited supply of dollars onto the market.

The local currency ended last week with a 25 percent appreciation against the dollar.

However just over the past four days it has gone down marginally by 0.04 percent.

Joy Business has learnt that the decline has been linked to a sudden hike in dollar demand following speculations that the Ghana cedi will depreciate further in the coming days.

The cedi was this morning trading at GHC3.28 but there are fears it will hit GHC3.50 pesewas.

But Joy Business sources at the Bank of Ghana say the central bank will resume the daily supply of 20 million dollars onto the market in the coming days.

This should, the sources say, will help the cedi appreciate strongly again against the dollar.

Some economists are also arguing that the cedi’s appreciation should be handled carefully otherwise if the cedi becomes too strong, it might discourage exporters from sending their goods outside. This development can affect the country’s foreign exchange earnings.

Analysts suggest the rate should be kept around 3 Ghana cedis to encourage more exports.