The Ghana cedi continued its strongest performance against the dollar in recent weeks, as the local currency improved in value against the American today, March 23, 2022.
This has narrowed its year-to-date loss to the American greenback to about 17%.
The cedi started the week selling at ¢12.60 to one American greenback, but is now going for ¢12.40.
It is coming on the back of the upgrade of Ghana’s credit rating to ‘CCC’, from ‘RD’ by ratings agency Fitch.
Fitch attributed the upgrade of the ratings on Ghana’s Local Currency denominated debt to the completion of the Domestic Debt Exchange Programme by Ghana in February 2023 and the resumption in payments on Local Currency bonds that cures the default on LC debt.
This announcement has boosted market sentiments and reduced the demand for the dollar and the other major foreign currencies.
Checks by Joy Business at some forex bureaus indicate that the cedi is going for ¢14.90 and ¢12.90 against the pound and the euro respectively.
The local currency may improve further in value against the dollar and othe other major foreign currencies if the Finance Minister, Ken Ofori-Atta and his team negotiate successfully with China regarding the restructuring of the $1.7 billion Ghana owes the Far East giant.
Cedi may record mixed performance to dollar this week
Earlier on, analysts had asserted that the cedi may record mixed performance against the US dollar this week.
This was after the local currency depreciated by a marginal 0.20% to the American greenback last week.