The Ghana cedi is likely to strengthen against the US dollar and other major foreign currencies amidst clarity on Ghana’s debt sustainability outlook, many analysts have projected.

Government on December 5, 2022, clearly defined the parameters of Ghana’s debt exchange programme

The local currency subsequently continued to improve despite the rating downgrade by Moody’s last week.

The Ministry of Finance at a press conference clarified the debt exchange programme, which included consolidating all existing bonds into four bonds and extending all bonds as of December 1, 2022, to now mature in 2027, 2029, 2032 and 2037.

Coupon payments associated with this debt exchange programme are 0% in 2023, 5% in 2024 and 10% from 2025 till maturity.

But these details improved the sentiments around the cedi, appreciating slightly ostensibly due to Ghana’s favourable debt sustainability outlook.

Additionally, analysts believe Federal Reserve’s (Fed) consideration to slow policy rate hikes added to investors’ belief that the Fed is closer to an interest rate peek.

“Negative feelings around a possible drop in yields pushed the USD to fall against a basket of currencies on Thursday. Against these backdrops, we expect the Ghana cedi to continue strengthening this week”, Databank Research revealed in its weekly market update.

The local currency had remained relatively stable, particularly the dollar in recent times.

It saw a week-on-week appreciation of 3.12% against the dollar, 0.88% to the pound and 3.79% versus the euro on the retail market.

Cedi now selling at ¢13.70

The Ghana cedi strengthen against the US dollar almost a day after the government announced the Debt Exchange Programme.

https://www.myjoyonline.com/cedi-strengthens-in-value-against-dollar-1-now-%c2%a213-70/