Cedi recovers slightly against dollar, others; One dollar going for GH¢16.22

The Ghana cedi saw a slight recovery against the US dollar and other major foreign currencies last week, following key financial developments. Ghana achieved a significant participation rate in restructuring $13 billion of its international debt with Eurobond holders. Additionally, the International Monetary Fund (IMF) reached a Staff Level Agreement with Ghana on the Extended Credit Facility (ECF) programme on Friday, October 4, 2024.

As a result, the cedi appreciated by 0.09% against the US dollar, closing at a mid-rate of GH¢16.19/$, and gained 0.35% and 0.28% week-on-week against the British pound and the euro, respectively. Analysts expect this trend to continue in the near term, especially with the cedi currently trading at GH¢16.22 to a US dollar on the retail market.

So far, the cedi has depreciated by approximately 22.0% against the dollar in 2024. However, with the IMF board expected to approve $360 million in financing this week, the country’s foreign exchange reserves should be boosted. This will likely support further stabilization of the currency. Analysts anticipate that the cedi will continue to strengthen in the coming weeks as market sentiment improves ahead of the expected fund release.