By The Ghana cedi will benefit from a much-needed foreign exchange buffer in the near term due to significant inflows.
This follows measures announced by the Bank of Ghana during the May 2023 Monetary Policy Committee (MPC) meeting.
Additionally, the Government of Ghana received a $103 million Operations Project grant from the African Development Bank, and the International Development Association arm of the World Bank approved a $250 million loan to support Ghana’s financial stability fund.
These developments boosted the foreign exchange supply in the market last week.
Analysts believe the Bank of Ghana’s initiative will reduce the strain on the local currency, while the expected inflows enhance their capacity for spot market interventions.
Last week, the cedi remained stable after the Central Bank announced measures to stabilize it during the May 2023 MPC meeting.
After shedding 1.17% against the dollar and 2.82% against the pound in the week ending May 28, 2024, the cedi remained stable for the rest of the week’s trades.
The local currency also gained 0.78% against the euro over the week.
It ended the week trading at a mid-rate of GH¢14.90 to one dollar, having lost about 18.01% in value against the dollar since the beginning of the year.
Source: Joy Business
