The Ghanaian cedi extended its recovery for the second consecutive week, bolstered by increased liquidity measures from the Bank of Ghana. This improvement followed the Central Bank’s injection of $199.8 million into the market, coupled with an additional $21.55 million in foreign exchange inflows from market participants.

Over the week, the cedi appreciated by 1.42% against the US dollar, 3.03% against the British pound, and 3.36% against the euro. By the close of trading last week, the currency was trading at a mid-rate of GH¢16.79 to the dollar, slightly down from its starting rate of GH¢16.70 earlier in the week. Despite these recent gains, the cedi has depreciated by 27% against the dollar since the beginning of the year.

In a related development, the International Monetary Fund (IMF) has signaled its intention to disburse $360 million to Ghana under the Economic Credit Facility program, contingent upon the approval of the third review by the IMF Board in early December 2024. This follows significant progress on key program benchmarks, including the successful debt restructuring earlier this year.

Analysts anticipate that the IMF’s support will boost market confidence and alleviate pressure on the cedi, as the funds will strengthen Ghana’s foreign exchange reserves and enhance supply-side interventions. Given these positive indicators, the cedi is expected to maintain its upward trajectory in the weeks ahead.

Source: TheDotNews