Cedi remains stable with a positive outlook; one dollar going for GH¢16.10

The Ghana cedi remained stable last week, with a positive outlook ahead of the 2024 general elections and the successful third review of Ghana’s 3-year Extended Credit Facility (ECF) programme by the International Monetary Fund.

Last week, the foreign exchange market was balanced as the Bank of Ghana (BoG)’s US$240.40 million market support was enough to meet demand.

As a result, the local unit remained unchanged across the major currencies and closed the week at a mid-rate of GH¢16.25 to one dollar.

It began this week going for about GH¢16.10 on the retail market. However, on the interbank market, it is being sold for GH¢14.80.

The year-to-date loss has narrowed further to about 24%.

Meantime, the IMF Board approval came from the successful debt reworks and the rapidly growing economy.

Analysts believe the successful third review of the ECF would bolster investor confidence and help tame speculative demand for foreign exchange.

They also envisage the tranche disbursement, coupled with seasonal FX liquidity as the festive season approaches, will augment the Central Bank’s market intervention.

This would help stabilise the local unit

Analysts also trust the IMF’s board approval for Ghana’s third review improved market sentiment and supported cedi’s performance.