The Ghana cedi has lost 2.2% in value to the dollar since January 1, 2024.
The local currency also dipped 1.12% and 1.11% week-on-week against the pound and the euro on the retail market.
A dollar is going for GH¢12.43 on the retail market.
It is, however, going for GH¢11.96 on the average interbank rate for commercial banks.
Bank of Ghana Exchange Rates pic.twitter.com/xTTF2dwxca
— Bank of Ghana (@thebankofghana) January 23, 2024
This is despite the existence of the International Monetary Fund (IMF) programme, the Board of which approved the first review programme last Friday, January 19, 2024.
Last week, the local currency ceded its ground to the major trading currencies due to a stronger US dollar, irrespective of some foreign exchange liquidity injection.
The Bank of Ghana’s $11.6 million spot market support failed to cushion the cedi, ending the week’s trades 1.60% weaker to a mid-rate of GH¢12.53/$ on the retail market.
However, analysts expect improved investor sentiment following the anticipated inflow of the $600 million bailout package and other budgetary support from the World Bank to help tame the depreciation of the cedi.
Despite the prevalence of corporate demand, they believe forex market sentiment would improve as the cash inflow from the IMF and the World Bank should help increase supply-side intervention and cushion the cedi in the near term.
Meanwhile, the cedi started strongly this week, going for GH¢12.43 to one US dollar.
Ghana successfully agreed on terms with bilateral creditors on January 12, 2024, to restructure the $5.4 billion debt with the Official Creditor Committee.