The Ghana cedi is expected to continue its stability against the US dollar and other major currencies this week.
This is expected to be supported by improved foreign exchange support from the Bank of Ghana.
The cedi recorded some gains last week across the major trading currencies in the retail market.
It appreciated 0.64% week-on-week against to close the week’s trades at a retail market mid-rate of GH¢11.68/$.
The cedi also gained 0.67% week-on-week against the pound while impressively gaining 1.60% against the euro despite persistent policy rate tightening by the Central Bank of Europe.
The Central Bank last week provided about $25 million to bolster liquidity in the FX market.
The cedi has benefited immensely from the International Monetary Fund programme, boosting investor confidence.
The local currency ended the first-half of this year with a better performance than the same period last year.
According to Bloomberg, the cedi lost about -11.21% to the US dollar, yet was still classified among African currencies with ‘Worst Spot’ Returns’.
On the World Currency Ranker, the cedis performance placed 17th, depreciating by 11.21 percent.
The cedi ended the first half of 2023 with a better performance recorded than the same period last.
Fitch Solutions has also predicted that the Ghana cedi will end 2023 at a rate of GH¢12.40 to one US dollar, which is a significant improvement from the 38% depreciation recorded in 2021.
Despite short-term exchange rate volatility, the cedi is eventually expected to stabilize given Ghana’s programme with the International Monetary Fund.
Currently, the cedi is trading at about GH¢11 to a dollar with analysts predicting that the value of the cedi will further shore up after Ghana received the first tranche of the US$ 3billion US dollar IMF bailout.
The Nigerian Naira is the worst African currency so far this year, according to Bloomberg.
It has lost about 39% value to the US dollar.
It is followed by the Angola Kwanza and the Egyptian pound with year-to-date losses of 38.8% and 20% respectively.
Financial Analysts in Ghana are still projecting further stability of the cedi, after Ghana received the first tranche of the US$ 3 billion International Monetary Fund (IMF) bailout.