Ghana’s currency in swift recovery after long depreciation

Ghana Cedi
Ghana Cedi

After a long spell of depreciation, Ghana?s cedi currency has started firming against all international trading currencies, according to Foreign Exchange (FX) market figures.

Ghana Cedi
Ghana Cedi
Falling from 4.6 Ghana cedis per the U.S. dollar on June 30, 2015, the exchange rate for Thursday, July 9, 2015 was 3.45 cedis to one dollar.

From various Forex Bureaux in the capital, one dollar was bought at between 3.1 cedis and 3.2 cedis and sold at between 3.4 cedis and 3.45 cedis.

One British pound was bought between 5.1 cedis and 5.2 cedis and sold between 5.5 cedis and 5.6, relative to the 6.4 cedis it was sold a week ago.

Furthermore, the Euro was bought at 4.1 cedis and sold for 4.4 cedis around the capital, compared to the 4.94 cedis it was sold by June 30.

The central bank announced late June that it had started intervening in the FX market daily with a supply of 20 million dollars against a daily demand of 14 million dollars, leaving a surplus of 6.0 million dollars daily.
The second half of the year usually experiences higher inflows of FX into the market due to the syndicated loan for cocoa purchase in the following crop season as well as the release of budget support from Ghana?s development partners.

Besides, the country has been receiving some frozen funding from development partners since June after the International Monetary Fund had approved of a three year bail-out program for the country.

In addition to that the country would do its issue its fourth Eurobond later in the year to raise at least 1.0 billion dollars as part of measures to substitute some short term debts for with longer dated ones as well as raising capital or some commercial projects.

The cedi had depreciated by over 25 percent during the first half of the year before regaining strength from the beginning of July.

The Monetary Policy Committee (MPC) of Bank of Ghana will declare its policy stance next Wednesday after their 65th Regular Meeting. Enditem.

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