The Ghana cedi has lost 2.2% in value to the dollar since January 2024.
This is despite the existence of the International Monetary Fund (IMF) programme which the Board approved the first review programme last Friday, January 19, 2023.
Last week, the local currency ceded its ground to the major trading currencies due to a stronger US dollar irrespective of some foreign exchange liquidity injection. The US dollar index closed 100 basis points stronger to 103.24 after the release of robust US Economic data, suggesting that the Fed will be slow in cutting policy rates.
The Bank of Ghana’s $11.6 million spot market support failed to cushion the cedi as it ended the week’s trades 1.60% weaker to a mid-rate of GH¢12.53/$ on the retail market.
The local currency also dipped 1.12% and 1.11% week-on-week against the pound and the euro on the retail market.
However, analysts expect improved investor sentiment, following the expected inflow of the $600 million bailout package and other budgetary support from the World Bank to help tame the depreciation of the cedi.
Despite the prevalence of corporate demand, they believe forex market sentiment would improve as the cash inflow from the IMF and the World Bank should help increase supply-side intervention and cushion the cedi in the near term.
Meanwhile, the cedi started strongly this week, presently going for GH¢12.43 to one US dollar.
Ghana agrees with bilateral creditors to restructure $5.4bn
Ghana successfully agreed on terms with bilateral creditors on January 12, 2024, to restructure $5.4 billion debt with the Official Creditor Committee.
The World Bank confirmed that the debt rework has unlocked a release of $300mn in budget support from the IDA, which will be considered by the executive board this week.
Latest Stories
-
CAFCC: Dreams FC didn’t lose because of stage fright – Karim Zito
2 mins -
ECG threatens to disconnect Ashanti Regional Minister’s residence if found to be in debt
13 mins -
Gladys Bosco sings about hope in ‘Me Ewurade Bra’
21 mins -
Accra High Court refuses requests to compel Akufo-Addo to receive anti-LGBTQ+ bill
32 mins -
I almost took my life – Fella Makafui
39 mins -
The emergence of the future: Prof. Jane Naana Opoku Agyemang
42 mins -
Knowing when to mute the mic: Kwasi Kwarteng’s choking example on ‘Blue and White’
56 mins -
R. Kelly’s sex abuse conviction in Chicago upheld in appeals court
1 hour -
Azumah Nelson returns to the ring to face EU Ambassador in a match to empower youth
1 hour -
UEFA U-16 Tournament: Black Starlets come from behind to beat Kazakhstan 5-1 in final game
1 hour -
Every worker in Ghana must be concerned about ILO’s report on SSNIT – GNAT President
2 hours -
Amerado falls after stage collapses during performance
2 hours -
Akosombo Dam: JoyNews highlights victims’ harsh living conditions post-spillage
2 hours -
World Safety Day: Zoomlion addresses the impact of climate change on occupational safety
2 hours -
Sean ‘Diddy’ Combs seeks to toss portion of sexual assault civil suit
2 hours