Despite a modest pressure amid moderated foreign exchange supply in the past weeks, the Ghana cedi is expected to rebound over the next two weeks.
This is largely due to the US$385 million disbursement from the International Monetary Fund.
The local currency is expected to stabilise within the GH¢11.39 -GH¢11.45 range.
Databank Research attributed the past weeks depreciation to seasonal demand.
“We attribute this flow-driven moderation partly to year-end unwinding of demand positions; nonetheless, our analysis indicates that the cedi is trading at fair value, exhibiting low deviation from Real Effective Exchange Rate (REER) benchmarks and signalling no material over- or undervaluation”, said Databank Research.
The local currency shed modest gains against the three major pairs over the past two weeks across both the wholesale and retail markets.
In the wholesale or interbank market, the US dollar/Ghana closed the fortnight at mid-rate of GH¢11.49, from GH¢11.41, while the pound and euro settled at GH¢15.35, from GH¢15.26 and GH¢13.47 from GH¢13.32, respectively.
In the retail market, the Ghana cedi closed at GH¢12.30 to one American greenback, reflecting a 2.03% depreciation, while the pound and euro weakened by 2.75% and 2.79% to GH¢16.35 and GH¢14.35, respectively.
Meanwhile, the cedi began the week trading at GH¢12.40 to one American greenback at the forex bureaus.
Its year-to-date gain stands at 26.22% to one US dollar.