The Managing Director of CAL Bank, Mr Frank Adu Junior, says the bank is optimistic that the cedi would make substantial gains against the dollar by close of the 2016.
Speaking to journalists on the sidelines of the bank’s 'Facts Behind the Figures’ event at the Ghana stock exchange, Mr Adu said the relative stability in the power crisis, coupled with the decline in crude oil prices on the world market, would help cut down the demand for dollars to purchase the commodity, while boosting the country’s foreign exchange reserve, according to a report by myjoyonline.com.
He said crude oil purchase accounted for a significant demand for dollars during the power crisis, with Ghana importing oil for thermal plants and finished products for vehicles and generators.
However, Mr Adu said, there had been a sharp decline for crude oil by half the initial demand that was recorded during the crisis.
He said this had led to a decrease in the demand for dollars, saving Ghana about $1 billion dollars.
“Now you have a fairly stable electricity supply, you have Aboadze giving you 125 million cubic feet of gas, then you have the price of oil itself go down to around 45 dollars per barrel.
“Once that is happening then it means that the cedi is going to continue to be stable because the supply now exceeds the demand,” he said.
The cedi is currently selling for GHc3.87 to the dollar on the forex market.