The cedi could trade steadily against the dollar and other major foreign currencies in the month of December.

This follows expected foreign inflows from the cocoa syndication loan.

The local currency endured its worst run in November 2023 since February 2023.

But analysts believe if the first review of the International Monetary Fund programme is completed by December 2023, the disbursement of the second tranche of $600 million could be timely in supporting the local unit against volatility through the first quarter of 2024.

The weakening oil imports will also help ease the pressure on the foreign exchange reserves and strengthen the cedi’s near-term outlook.

The Bank of Ghana on November 27, 2023, said in the Monetary Policy Committee Report that the early completion and settlement of favourable agreement terms with bilateral creditors and commercial bondholders will help boost confidence and trigger resource flows to the economy.

It continued that reserve build-up will even be stronger by the end of the year on receipt of the cocoa loan and disbursement of the IMF second tranche.

The cedi ended last week unchanged from its week-open mid-rate of ¢12.13 to a dollar in the retail market.

However, it weakened by 1.16% and 1.71% week-on-week versus the pound and the euro, respectively. The local unit, however, weakened across the major currencies on the interbank market.