The Ghana cedi has continued its comeback against the US dollar in recent weeks, as the local currency improved in value on Thursday, March 23, 2022.
The cedi started the week on March 20, selling at ¢11.64 to a dollar but is now going for ¢11.02 at the inter-bank market rate at commercial banks.
It is going for ¢13.51 and ¢11.81 against the pound and the euro, respectively.
Checks at some forex bureaus indicate that the cedi is pegged at ¢12.40 to a dollar.
The cedi is going for ¢14.90 and ¢12.90 against the pound and the euro, respectively.
Some financial analysts have attributed the improvement to the upgrade of Ghana’s credit rating to ‘CCC’ from ‘RD’ by the rating agency Fitch.
Fitch attributed the upgrade of the ratings on Ghana’s local currency-denominated debt to the completion of Ghana’s Domestic Debt Exchange Programme in February 2023 and the resumption of payments on local currency bonds that cures the default on debt.
This announcement has boosted market sentiments and reduced the demand for the dollar and the other major foreign currencies.
The local currency may improve further in value against the dollar and other major foreign currencies if the Finance Minister, Ken Ofori-Atta, and his team negotiate successfully with China regarding the restructuring of a $1.7 billion Ghana owed the Asian giant.
Analysts had earlier asserted that the cedi might record mixed performance against the US dollar this week.
This was after the local currency depreciated by a marginal 0.20% to the American greenback last week.