The Ghana cedi will enjoy a much-needed foreign exchange buffer in the near term on the back of the sizable inflows.

This follows some measures by the Bank of Ghana announced during the May 2023 Monetary Policy Committee (MPC) meeting.

At the same time, the Government of Ghana received a $103 million indicative Operations Project grant from the African Development Bank. Additionally, the International Development Association arm of the World Bank approved a $250 million loan to support Ghana’s financial stability fund.

All these boosted the foreign exchange supply in the market last week.

Analysts believe the Bank of Ghana’s initiative will reduce the strain on the local unit while the expected inflows enhance their spot market intervention capacity.

Last week, the cedi remained stable after the Central Bank announced some measures to stabilise it during the May 2023 MPC meeting.

After shedding 1.17% week-on-week and 2.82% week-on-week vs the dollar and the pound on May 28, 2024, the cedi remained stable for the rest of the week's trades.

Also, the local unit gained 0.78% week-on-week vs the euro.

It ended the week trading at a mid-rate of GH¢14.90 to one dollar. It has so far lost about 18.01% in value to the dollar since the beginning of the year.