The Ghana cedi is expected to trade steadily against the dollar and other major foreign currencies in December 2023.
This follows expected foreign inflows from the cocoa syndicated loan and the disbursement of the second tranche of $600 million from the International Monetary Fund (IMF).
Analysts believe the completion of the first review of the IMF programme by December 2023 could be timely in supporting the local unit against volatility through the first quarter of 2024.
The local currency endured its worst run in February 2023 since November 2023.
It weakened across the major currencies on the interbank market in November 2023.
Within the same month, it weakened by 1.16% and 1.71% week-on-week versus the pound and the euro, respectively. On November 27, 2023, the Bank of Ghana said in the Monetary Policy Committee Report that the early completion and settlement of favourable agreement terms with bilateral creditors and commercial bondholders will help boost confidence and trigger resource flows to the economy.
It added that reserve build-up will be stronger by the end of the year on receipt of the cocoa loan and disbursement of the IMF second tranche.
As of the close of business on Monday, November 27, 2023, the cedi traded around ¢11.61 to a dollar in the interbank market rate but at ¢12.13 to a dollar in the retail market.
Bank of Ghana Exchange Rates pic.twitter.com/aso1tztKse
— Bank of Ghana (@thebankofghana) November 28, 2023