Cedi Strengthens Further as Bank of Ghana Interventions Boost Recovery
Cedi Strengthens Further as Bank of Ghana Interventions Boost Recovery
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The Ghanaian cedi extended its recovery for the second consecutive week, buoyed by increased liquidity injections from the Bank of Ghana (BoG). The central bank recently infused $199.8 million into the market, supplemented by $21.55 million in foreign exchange inflows from market participants.
As a result, the cedi gained 1.42% week-on-week against the US dollar, 3.03% against the British pound, and 3.36% against the euro. At the close of trading last week, the cedi stood at a mid-rate of GH¢16.79 to the dollar. It has since opened the new week at GH¢16.70.
Despite the recent gains, the cedi has depreciated by 27% against the dollar since the start of 2024.
In a positive development, the International Monetary Fund (IMF) announced plans to disburse $360 million to Ghana under the Economic Credit Facility program in early December, pending Board approval of the third review. This follows significant progress in Ghana’s economic reforms, including a successful debt restructuring earlier this year.
Market analysts predict the IMF disbursement will further strengthen the cedi, boosting foreign exchange reserves and easing demand pressure. The improved market sentiment is expected to sustain the cedi’s upward trajectory in the coming weeks.
With these interventions and macroeconomic developments, the cedi’s recovery underscores renewed confidence in Ghana’s economic management and policy framework.
