An International Monetary Policy Advisor with EFRAG Dr. Jerry Kombat Monfant is predicting a further depreciation of the cedi against major trading currencies especially the cedi.
This he told Sena Nombo on the Professionals Forum would be influenced by the maturity of two domestic bonds which government has to pay off.
Even though he says these bonds are cedi denominated, Dr. Monfant reveals that sizeable number of the bond holders is foreign investors who bought the bonds in question with dollars.
The International monetary policy advisor says the maturity of the bonds means government has to find dollars to pay off these foreign investors.
He says the struggle of government to find dollars to pay of these investors would create a shortage that would result in a situation where demands for dollars by local businessmen would risk not being met.
Jerry Monfant says this would lead to the further depreciation of the cedi against the dollar.
Dr. Monfant said one of the bonds matured in November and the other expected to mature this month, December 2021.
The cedi is already gasping for breath as most Forex Bureau are trading a dollar above ¢6, with the brisk trading of imports during the Christmas and New Year period expected to put further pressure on the local currency.
The Professionals Forum Hour broadcasts on @Radiogold905fm on Facebook and Radio Gold 90.5 FM on Radio Streaming apps on Sundays at 4pm.
Story: Sena Nombo/Radiogoldlive.com