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The Cedi dropped to a fresh low against the dollar this week, trading at 8.65 from 8.30 at last week’s close, after the Bank of Ghana halved the size of its bi-weekly FX auction, now selling just $25 million into the market.
The government expects inflows from a $750 million syndicated loan approved by Parliament before the end of Q3, in addition to a 1.3 billion cedi Cocobod loan and potential IMF funding based on current negotiations.
Until this financing is drawn down, we [Aza Finance] expect the Cedi to remain under pressure, likely crossing the 9 threshold given that dollar demand is extremely high.
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