Domestic
Forex Markets
I
n the first quarter edition of The Investor, our forex analyst asked if 2014 will be the year Sierra Leoneans witness a massive appreciation of the Leone against the US Dollar, or will market players have to wait a lifetime to realize some positive upward movements from the ‘Sweet Salone Leone’? - Well with 2Q results in, we can safely say it is slowly becoming a likelihood. The Leone is
the fifth-best performing African currency tracked by Heritage Frontier Currency Index so far in 2014, with gains of 0.3 percentage
points against the US Dollar. The exchange rate against the US Dollar moved up by 0.2 basis points, remaining relatively unchanged
against the Sterling and US Dollar.
FOREX RATE DISPERSION AMONGST RETAIL BANKS IN SIERRA LEONE 2Q:2014
MARKET COMMENTARY
UNITED KINGDOM
T
he Pound Sterling pushed to US$1.70,
it’s highest this quarter. This is the
highest level for the first time in five years.
This is indication of the UK economy returning to its former strength.
SIERRA LEONE CENTRAL BANK US$ EXCHANGE RATE FOR 2Q:2014
The Bank Governor, Mark Carney is set to
hike interest rates sooner or later to calm
the over heating within the housing markets.
As quantitative easing is slowly being
phased out, we are now witnessing the currency markets reaction.
The rise contributes to a general market
rally in recent months, since July 2013,
when the Sterling fell below US$1.50.
Meanwhile the Leone pushed to its highest
against the US Dollar on 9th July 2014, recording a peak value of SLL4375 per dollar.
SIERRA LEONE CENRAL BANK US$ FOREIGN EXCHANGE AUCTION -
Four days later, it was back down to its lowest point this quarter, recording a value of
SLL4328.25.
The Leone was relatively weak against the
sterling as the GBP pushed to its highest
in July, amidst news of buoyant economic
activities.