The Ghana cedi would temporarily strengthen against the dollar and the other major foreign currencies as the first tranche of the cocoa syndicated loan hit the account of the Bank of Ghana on October 27, 2022.

The about $790 million which will support the country’s balance of payment is expected to boost dollar liquidity in the forex market.

Joy Business understands that the Central Bank will give the cedi equivalent of the loan to Ghana Cocoa Board to finance cocoa purchases for the 2022/2023 crop season.

Since the last two days, the rate of depreciation of the cedi to the American ‘greenback’, the pound and the euro has slowed down. 

Presently, the cedi is going for ¢13.80 to dollar in the retail market. It is also selling at ¢15.10 and ¢13.10 to the pound and the euro respectively.

It is expected that this performance will be sustained as the government awaits an economic programme from the International Monetary Fund ahead of the budget in November 2022.

The second tranche of about $340 million, which would be spread over three months will come in between November 2022 and February 2023.

The facility would attract an interest rate of 1.75%.

The Standard Chartered Bank, Coöperatieve Rabobank, Industrial and Commercial Bank of China (ICBC), MUFG Bank Ltd, Natixis and Ghana International Bank plc were the Initial Mandated Lead Arrangers for the facility.

The London branch of Bank of China Limited joined the facility as Senior Mandated Lead Arranger, while DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main and the Arab Bank for Economic Development in Africa (“BADEA”) joined as Mandated Lead Arrangers.

Ecobank joined as an Arranger. The OPEC Fund, United Bank for Africa PLC, Ahli United Bank B.S.C. and Federated Hermes Inc joined as Lead Managers, whilst AfrAsia Bank Limited, Citibank N.A, Absa Bank Ghana Limited and GCB Bank Plc were joined as Managers.