Cedi’s recovery continues; one cedi going for GH¢16.70

The Ghana cedi has continued its positive momentum for the second week in a row, bolstered by increased liquidity from the Bank of Ghana. This follows the Central Bank’s injection of US$199.8 million into the market, along with a foreign exchange inflow of US$21.55 million from market participants.

Over the past week, the cedi strengthened by 1.42% against the US dollar, and saw a notable rise of 3.03% against the British pound and 3.36% against the euro. It ended the week at a mid-rate of GH¢16.79 to the dollar, up from GH¢16.70 at the start of the week. However, the cedi has depreciated by 27% against the US dollar so far this year.

In a further boost to market sentiment, the International Monetary Fund (IMF) signaled that it would release US$360 million to Ghana under the Economic Credit Facility, following approval of the third review in early December 2024. This comes after positive progress on key program targets, including the successful debt restructuring earlier in the year.

Analysts anticipate that the disbursement will enhance market confidence and reduce pressure on the cedi, as the influx of funds will help bolster Ghana’s foreign exchange reserves and support supply-side measures. As a result, the cedi is expected to continue its recovery in the coming weeks.