The Ghana cedi is expected to continue its good run against the US dollar and the other major currencies on the retail market this week.
This is a forecast by many research institutions including GCB Capital, Databank Research and Republic Securities.
The cedi gained about 9% in value to the American greenback last week to sell at ¢11.00 on the retail market, following the Executive Board of the International Monetary Fund’s approval of the Fund-support programme.
This ranked the local currency as the world’s top performer after narrowing its year-to-date loss on the retail market to about 7%.
Analysts expect the anticipated foreign exchange inflows from the IMF deal to shore up Ghana's foreign reserves and strengthen the cedi.
However, they expressed concern about the decline of Ghana’s import cover by 35% as of April 2023.
Similarly, Ghana’s Balance of Payment financing gap throughout the IMF-support programme is estimated at about $15 billion, with the $3 billion package making up 20% of the total needs.
The programme envisages additional funding from the World Bank, African Development Bank and other bilateral partners.
Therefore, the exchange rate outlook hinges on the timeframe for completing the external debt operation and successful bi-annual reviews under the programme.
Latest Stories
-
GPL: Accra Lions beat Hearts of Oak to go third
16 mins -
Seek higher grounds as rains intensify – GMet warns
50 mins -
May Day: Sam Ankrah promises to prioritise welfare and well-being of workers if elected president
54 mins -
Bawumia plans door-to-door campaign for 2024 polls
59 mins -
GAF condemns ‘unprovoked’ fatal shooting of soldier in Kasoa land dispute
1 hour -
OSP’s request for money laundering probe against Cecilia Dapaah baseless – AG advises EOCO
2 hours -
Obofour Raphael releases ‘Asem Yi Di Ka’ EP
2 hours -
‘Operation Clean Your Surroundings’: Popular Kenkey joint and public toilets in Takoradi shut down
2 hours -
GFA boss Kurt Okraku graces Dreams FC’s dinner to celebrate CAF Confederation Cup exploits
3 hours -
We’ve intensified efforts to combat misinformation, hate speech ahead of elections- Akufo-Addo
3 hours -
Sekondi-Takoradi: STMA/Joy News’ ‘Operation Clean Your Surroundings’ taskforce arrest 10 for open defecation
3 hours -
Joy Prime’s Prime Morning celebrates May Day with gallant Officers of Ghana Navy
3 hours -
YAWC Network Ghana chapter holds National summit in Accra
3 hours -
Memories of a Baby Univers
4 hours -
Akufo-Addo calls for peaceful elections, says politics shouldn’t divide us
4 hours