The Ghana cedi continued its recent gain against the US dollar, starting the week on a positive note.
Checks by Joy Business at the forex bureaus indicate that the local currency gained 10 pesewas early morning of February 6, 2023, to sell at ¢10.40 to the dollar.
This narrowed its year-to-date loss in the retail market.
The same story can also be said about the pound and the euro as the cedi is going for ¢14.80 and ¢13 respectively.
The cedi gained about 3.1% value to the American ‘greenback’ last week. A week before, it improved in value by about 0.78%.
Many market watchers and analysts are surprised about the sudden turn of the performance of the local currency, especially when the country’s reserves have gone down drastically to about 2.7 months of import cover, whilst the government struggles to revive the fiscal economy.
However, the recent resurgence of the cedi could signal that investors are very certain of an International Monetary Fund bailout programme soon.
The local currency depreciated by about 38.8% to the American greenback in 2022, according to Bloomberg.
It began the year going for ¢11.60, and in the first month of 2023 had lost about 19% in value to the US dollar, the Bank of Ghana stated in its January 2023 Summary of Economic and Financial Data.