The pressure on the Ghanaian cedi is easing, signalling a strong performance for the local currency after weeks of decline.
This positive trend aligns with analysts’ projections that the Cedi’s depreciation would be reversed by mid-year, thanks to interventions in the forex market by the Bank of Ghana.
The cedi has been gaining ground against major trading partners. Last week, it appreciated by 1 per cent against the US dollar, 2 per cent against the British pound, and recovered 3 per cent of its losses against the euro.
Recently, the Bank of Ghana injected $11 million into the spot market and conducted a $20 million forex auction to Bulk Oil Distribution Companies (BDCs) to correct market imbalances.
As Ghana nears the final stages of signing a Memorandum of Understanding (MoU) with bilateral creditors, this move is expected to facilitate the approval of the third tranche of $360 million from the International Monetary Fund (IMF) by the end of June.
This approval should boost international inflows and unlock additional funds from multilateral partners like the World Bank, helping to bolster forex liquidity and further stabilize the cedi.
