Confidence in the foreign exchange market is expected to support the cedi’s rally against the US dollar and the other major foreign currencies in the coming weeks.
This follows rising investor sentiments that the country and the International Monetary Fund (IMF) will reach a Staff-Level agreement today.
According to Databank Research, it expects a possible IMF programme to turn the economy around.
“The Ghana cedi started to see gains against the major trading currencies after the government launched the domestic debt exchange programme. This contributed to easing the pressures as the improved visibility of Ghana’s economic outlook calmed investors’ fears around the cedi”.
The IMF Mission team is expected to conclude its work today, December 13, 2022, and issue a statement in that regard.
On arrival at the beginning of the month, the team said the Fund have had productive discussions with the government over the last few months and looks forward to making further progress toward reaching an agreement on policies and reforms that could be supported by an IMF lending arrangement.
Last week, the local currency clawed back 10% against the dollar, selling at ¢13.00 on average in the retail market. It also appreciated 6.4% and 7.7% to the pound and the euro respectively.
¢12.50 now $1 as cedi continues resurgence
The cedi traded around ¢12.50 in the retail market to the dollar yesterday, December 12, 2022.
This follows a four days continuous gain in value to the US dollar and the other major foreign currencies.