Cedi remains stable as foreign exchange demand eases; one dollar equals GH GH¢15.90

The Ghana cedi remained stable for the most part of last week as the foreign exchange demand eased slightly.

After depreciating 0.64% day to-day and 0.6% day-to-day vs the US dollar and the euro on June 25, 2024, the local currency remained stable for the rest of the week’s trades.

It sold at GH¢15.90 to one dollar at the close of last week. Subsequently, it began the week unchanged yesterday July 1, 2024.

However, the local unit has depreciated by 22.45% against the American greenback since January 1, 2024.

The Executive Board of the International Monetary Fund (IMF) approved an immediate disbursement of $360 million for Ghana after completing the second review of the country’s 3-year Extended Credit Facility (ECF). This brought the total disbursement under the programme to $1.6 billion.

The tranche disbursement comes on the back of a successful debt rework of Ghana’s bilateral debt with a Memorandum of Understanding signed last month.

The $360 million was expected to have been credited to the Bank of Ghana’s account yesterday July 1, 2024.

Analysts believe the successful second review could bolster investor confidence and help tame speculative demand for foreign exchange.

They envisage the tranche disbursement will strengthen the Central Bank’s market intervention and help stabilise the local unit in the interim.