SocGen Sees Ghana Inflation to Lower Gold Speeding Cedi Fall
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Ghana’s cedi may depreciate a further 10 percent from a record low against the dollar by year-end as inflation accelerates and a weaker gold price reduces foreign exchange inflows, according to Societe Generale SA.
The currency of Africa’s second-biggest bullion producer will probably fall to 2.4 per dollar before the start of 2014, Souheir Asba, a London-based emerging markets strategist at SocGen, said in an e-mailed response to questions. The cedi has lost 11 percent against the dollar this year to trade at 2.15 per dollar as of 8:08 a.m. in Accra, the continent’s worst performer after the rand and Namibia’s dollar, which is pegged to the South African currency.