The first tranche of the about $800 million Cocoa Syndicated Loan is easing pressure on the Ghana cedi a few days into 2024.

The local currency came under some pressure this month after remaining stable in November 2023.

However, market dealers expect the foreign exchange inflows to increase the supply-side intervention and bolster the cedi in the near term.

Additionally, they expect the final Bulk Oil Distribution Companies Foreign Exchange auction for the year to positively impact cedi’s outlook this week. The Central Bank sold $20 million at ¢12.14 to the BDCs.

So far this week, the cedi has gained some marginal grounds against the dollar in the retail market. It is going for ¢12.18 to one American greenback as against last week's ¢12.23.

The Bank of Ghana however quotes one dollar to ¢11.65.

Last week, the local currency lost marginal grounds against the major trading currencies despite the improved FX liquidity. The Bank of Ghana sold about $8 million on the spot market in anticipation of $541 million inflow from the Cocoa Syndication loan.

However, this was insufficient to hold the cedi, leading to 0.41% week-on-week depreciation, closing at ¢12.23/$ at the week’s close.

Similarly, it shed 0.33% and 7.55% versus the pound and euro on the retail market.