Accra, Ghana – The Ghana cedi experienced a slight recovery against the US dollar and other major foreign currencies last week, following the announcement that the country had achieved a significant participation rate from Euro bondholders in its efforts to restructure $13 billion of international debt.
Additionally, the International Monetary Fund (IMF) reached a Staff Level Agreement with Ghana regarding the Extended Credit Facility program on Friday, October 4, 2024, further bolstering confidence in the local currency.
For the week, the cedi appreciated by 0.09% against the US dollar, closing at a mid-rate of GH¢16.19/$. It also gained 0.35% against the British pound and 0.28% against the euro. The performance of the local currency is expected to continue improving in the near term.
In the retail market, the cedi is currently trading at GH¢16.22 to the US dollar, bringing the year-to-date depreciation against the dollar to approximately 22.0%.
Pending approval from the IMF board, Ghana is set to gain access to $360 million in financing this week. This influx of funds is anticipated to bolster foreign exchange reserves and support supply-side interventions.
Market analysts are optimistic about the cedi’s outlook, expecting it to gain further strength in the coming weeks as market sentiment improves ahead of the anticipated fund release.