The activities of speculators which cause the cedi to depreciate against some major trading currencies may have minimal impact on the currency as the elections approach. This is the position of some currency analysts.
The comments come on the back of concerns among some industry watchers of possible distortions to the cedi’s performance ahead of the elections.
“It is too late to realize the impact of the elections on the performance of the cedi; it is only when the election results are uncertain that people start speculating…But they don’t even keep them in the bank some convert them into foreign currency and hold the physical foreign currency,” the General Manager of Treasury at HFC Bank, Joseph Nketsia explained.
Mr. Nketsia added the window to experience possible distortions on the currency market are over even though some speculations may occur with the declaration of results.
“This normally happens between July and September there about, not when the election is very close, by this time people who want to circulate have already done that.”
Meanwhile responding to the impact of the Christmas blues on the performance of the cedi, Joseph Nketsia indicated of a relatively decline in demand as the traders have largely ordered their goods by this time.
He was also confident that the cedi will not cross the 4 cedis to one dollar mark even on the forex market.
Impact of cocoa syndicated loan
There were some concerns over a likely depreciation due to the increased corporate dollar demand prior to the coming on board of the cocoa syndicated loan in September this year.
But Mr. Nketsia tells Citi Business News the move should equip banks to meet the demands of their clients as they will be allowed access to their respective requests with the bidding of the proceeds of the 1.8 billion dollars cocoa syndicated loan.
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