- Cedi stabilizes at GH¢14.90 to the dollar
- Bank of Ghana's measures and foreign loans to support cedi
- Analysts predict continued stability for Ghana's currency
The Ghana cedi is expected to experience a much-needed respite in the foreign exchange market in the short term, thanks to significant inflows. This development comes on the heels of measures announced by the Bank of Ghana during the May 2023 Monetary Policy Committee (MPC) meeting.
In a related development, the Government of Ghana received a grant of $103 million from the African Development Bank for its Operations Project, while the International Development Association arm of the World Bank approved a $250 million loan to support Ghana’s financial stability fund.
These developments have boosted the foreign exchange supply in the market, leading analysts to predict a reduction in the strain on the local currency. The expected inflows are also expected to enhance the Bank of Ghana’s spot market intervention capacity.
Last week, the cedi stabilized after shedding 1.17% and 2.82% against the dollar and pound, respectively. However, it gained 0.78% against the euro. The cedi ended the week trading at GH¢14.90 to one dollar, having lost 18.01% of its value since the beginning of the year.
