The Ghana cedi regained some stability against the US dollar last week, preserving its year-to-date loss of about 6.35%.
After a difficult period in the past two weeks, the cedi regained its footing as it firmed against the major trading currencies.
Although corporate demand exerted some pressure on the local currency, the Bank of Ghana’s marginal $17 million market intervention helped hold the cedi steady.
As a result, it advanced by 0.93% and 1.43% week-on-week versus the pound and the euro but remained unchanged against the dollar at a mid-rate of GH¢13.05 to a dollar on the retail market.
Meanwhile, following the approval of the $300 million facility from the World Bank by Parliament last Friday, March 8, 2024, market watchers and analysts are projecting stability for the local unit in the near term.
The loan facility, which constitutes a 26% grant, has a repayment period of 25 years with a 5-year grace period. It is intended to facilitate the restoration of fiscal sustainability, promote financial sector stability, stimulate private sector development, enhance financial discipline within the energy sector, and reinforce social and climate resilience.
Analysts expect an imminent disbursement of this facility to improve liquidity and strengthen the intervention capacity of the Central Bank.
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