The Ghana cedi is expected to record gains against the dollar and other major foreign currencies this week, as the progress of the International Monetary Fund (IMF) deal favourably impacts the market.
According to many analysts that spoke to Joy Business, the cedi’s performance since March 2023 has been surprising, despite Ghana’s weak balance of payment position.
In the first two months of 2023, the cedi lost about 22.1% to the US dollar, but has since March 2023 remain stable against the US dollar.
According to Bloomberg, the cedi strengthened by 5.3% on May 15, 2023, the most since April 3, 2023.
It actually gained 5.0 pesewas to the American greenback on the retail market to sell at ¢11.90 on May 15, 2023.
The local currency traded sideways in the early part of last week, but managed to gain some stability, following an announcement of debt relief by Ghana’s external creditors, which is crucial for the country to receive approval from the Board of the International Monetary Fund.
Cedi gains 0.21% against dollar last week
The cedi also benefited from the Bank of Ghana’s foreign exchange support, resulting in a 0.21 percent week-on-week appreciation against the dollar.
It also climbed 0.77% against the euro, but remained unchanged against the pound.
If the trend continues, the local currency would reverse significantly the losses experienced at the beginning of this year.