Witnessed short-term pressure on domestic currency is expected to subside with an anticipated trading boundary of GHC4.2- GHC4.50 for the GHC/USD$ trading pair in year 2017. Our projections is significantly influenced by upward trend in commodity prices, specifically oil, renewed investor confidence, on-going IMF fiscal consolidation, increasing domestic oil production and gradual drift toward a net oil export economy.
Assessment of international crude oil price trend indicates an upward price momentum, underpinned by supply challenges and reduced US oil production. Crude oil price has increased 46.47% on a YoY (year over year) basis with upward momentum anticipated to continue on the back of the recent 1.2 million oil cut agreement by OPEC. These developments are projected to increase Government oil receipts and consequently reduce the current account deficit in Fiscal year 2017.