The Ghana cedi returned to its loss trajectory last week as it has depreciated by 9.65% to the dollar on the retail market since the beginning of the year.
This is despite the Bank of Ghana’s intervention. The Central Bank auctioned $20 million to the Bulk Oil Distribution Companies at a forward rate of GH¢13.23 to a dollar.
The local currency shed 0.19% in value to the American greenback last week. It also weakened 0.90% to the pound but closed with a 0.17% gain against the pound.
Ghana and officials of the International Monetary Fund on Sunday reached a staff-level agreement on the second review of the $3 billion Extended Credit Facility.
Analysts see the move as a positive step towards receiving the planned $ 360 million funding. However, the board approval and fund disbursement depend on the country reaching an agreement on a Memorandum of Understanding consistent with the $5.4 billion official creditor restructuring agreement reached in Jan 2024.
The country could not also reach a debt restructuring agreement with two of its international bondholder groups.
Analysts believe while the IMF board approval is not contingent on the debt rework, the current development may lead to renewed market uncertainty, prompting investors to lean towards safe-haven assets. As a result, the Ghana cedi may lose ground this week.
Meanwhile, the cedi is going for GH¢13.60 on average to a dollar at the Forex Bureau.
