The Ghana cedi continued its revival for the second consecutive week, supported 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.
The local currency recouped 1.42% week-on-week against the dollar. It also gained 3.03% versus the pound and 3.36% against the euro.
The cedi closed the week at a mid-rate of GH¢16.79 to the dollar. However, it began the week trading at GH¢16.70 to the American greenback.
So far this year, it has lost 27% in value to the US dollar.
Last week, the International Monetary Fund hinted at disbursing US$360 million to Ghana under the country’s Economic Credit Facility program following Board approval of the third review in early December 2024.
This follows positive strides towards key program parameters, notably the successful debt restructuring achieved earlier this year.
Analysts expect this development to improve market sentiment and ease pressure on the cedi, as the funds will augment Ghana’s foreign exchange reserves and support supply-side interventions.
Against this backdrop, the cedi is expected to continue gaining in value in the coming weeks.
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