The Ghanaian cedi maintained its stability last week, buoyed by positive developments such as the upcoming 2024 general elections and the successful third review of Ghana’s 3-year Extended Credit Facility (ECF) programme by the International Monetary Fund (IMF).
The foreign exchange market experienced balance during the week, supported by the Bank of Ghana’s (BoG) injection of $240.40 million, which adequately met demand. Consequently, the cedi held steady against major currencies, closing the week at an average rate of GH¢16.25 to the US dollar.
As the new week began, the cedi traded at approximately GH¢16.10 on the retail market, while on the interbank market, it was sold at GH¢14.80. This performance further reduced the currency’s year-to-date depreciation to about 24%.
The IMF’s board approval of Ghana’s third ECF review was largely attributed to successful debt restructuring efforts and robust economic growth. Analysts believe this milestone has enhanced investor confidence, reducing speculative demand for foreign exchange.
The upcoming disbursement of funds under the IMF programme, combined with increased foreign exchange liquidity during the festive season, is expected to boost the Central Bank’s market interventions. These factors are anticipated to further support the cedi’s stability.
Experts also note that the IMF’s endorsement has positively influenced market sentiment, contributing to the cedi’s resilient performance.
Source: TheDotNews