Cedi pressure

Inflows from the International Monetary Fund (IMF) and World Bank are expected to provide some respite for the cedi as the country braces for the traditional surge in demand for foreign exchange during the festive season. With the third-quarter demand season less than six weeks away, concerns have been raised over its potential impact on the local unit which has fluctuated against its major trading partners. While the cedi has shown relative stability in recent months, thanks in part to central bank intervention among others, analysts warn that the currency remains vulnerable to shocks. The upcoming elections and associated increase in government…