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The Ghana cedi is expected to remain stable against the US dollar this week due to improved foreign exchange (FX) liquidity and reduced demand. This stability follows the inflow of $360 million from the International Monetary Fund (IMF), which has enhanced FX liquidity and slowed corporate demand for foreign currency.
Last week, the cedi held steady against the dollar, benefiting from improved market sentiments and easing FX demand. The stability was further supported by the IMF board’s approval and subsequent release of the third tranche of $360 million following the second review of Ghana’s 36-month Extended Credit Facility.
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Additionally, the Bank of Ghana contributed to FX liquidity by selling about $19 million on the spot market.
Despite these positive developments, the cedi did experience slight declines against other major currencies. It shed 0.30% week-on-week against the pound and 0.25% against the euro following the successful UK election. The cedi has faced challenges in recent weeks and months, dealing with persistent corporate demand and subsequent depreciation.
As a result, the cedi ended the first half of 2024 with a 22.45% depreciation against the dollar on the retail market. Currently, one dollar is exchanged for GH¢15.95 at forex bureaus. Since January 1, 2024, the local currency has depreciated by 22.58% against the dollar.
