The Ghana cedi narrowed its year-to-date loss to the US dollar to about 7.50% on the retail market after making some gains against the US dollar and the other major foreign currencies last week.
This follows the inflow of $300 million from the World Bank and some remittances during the Easter holidays. A week before, it had lost about 8.15% to the American greenback.
The inflows helped to ease the depreciating pressure on the local currency.
The Bank of Ghana consequently improved its selling activity on the spot market, supporting the cedi against the major trading currencies.
Last week, the local unit gained 0.56% week-on-week against the dollar, closing at a mid-rate of GH¢13.43 (Selling: GH¢13.60). Similarly, the cedi gained 1.51% and 0.35% week-on-week against the pound and the euro on the retail market.
The International Monetary Fund Mission Team arrived in Ghana to evaluate the progress made by Ghana regarding the Fund-support programme. The review commenced last week and is expected to last two weeks.
A successful review will pave the way for a third tranche disbursement of $360 million under the $3 billion Extended Credit Facility (ECF).
Analysts believe a successful review will boost market sentiments around the cedi and help curb speculative activities.
Cedi ended 2023 with a depreciation of 15.57% to dollar
The cedi lost ended 2023 with a year-to-date depreciation of 15.57% to the US dollar in the retail market.
On the interbank market, the local currency lost about 27.81% in value to the dollar.
However, Bloomberg did not classify it in the ‘Best Spot Returns’ or ‘Worst Spot Returns’ category.