The Ghana cedi will receive a much-needed foreign exchange buffer in the short term due to substantial inflows.
This follows several measures announced by the Bank of Ghana during the May 2023 Monetary Policy Committee (MPC) meeting.
Meanwhile, the Government of Ghana secured a $103 million Operations Project grant from the African Development Bank and a $250 million loan from the World Bank’s International Development Association to support Ghana’s financial stability fund.
These developments increased the foreign exchange supply in the market last week.
Analysts believe the Bank of Ghana’s measures will ease pressure on the local currency while the anticipated inflows will improve their capacity for spot market intervention.
Last week, the cedi remained stable after the Central Bank announced stabilization measures during the May 2023 MPC meeting.
After declining 1.17% week-on-week and 2.82% week-on-week against the dollar and the pound on May 28, 2024, the cedi maintained stability for the rest of the week’s trades.
Additionally, the local currency appreciated by 0.78% week-on-week against the euro.
It ended the week trading at a mid-rate of GH¢14.90 to the dollar. It has depreciated by about 18.01% against the dollar since the beginning of the year.