People have been besieging forex bureaux in the country to change their foreign currencies, especially United States dollars following the regaining of strength by the Ghana Cedi.
The revival of the Ghana cedi continued unstoppable before the announcement by the International Monetary Fund (IFM) that a Staff-Level Agreement has been reached with the Government of Ghana.
On Wednesday December 14, 2022, the currency was selling around GH¢8.50 to one US dollar as report indicates that the rate may even get better.
Beside the dollar, the local currency gained strength in value also against the pound and the euro which both are presently trading at GH¢12 and GH¢9.50 respectively to the other two major foreign currencies.
The local currency (cedi), within a span of 14 days has regained over 33 percent of its lost value to the dollar.
This is after the cedi recorded a depreciation rate of close to 60 percent against the dollar in the latter days of the month of November 2022.
The fast appreciation of the cedi against the dollar, has made the local currency the best performing currency against foreign currencies.
On Wednesday alone, the dollar took a nosedive giving the cedi the advantage to appreciate by some 12 percent to reach the now GHS8.50 to $1.
The strengthening of the cedi against its dollar counterparts begun on December 1, 2022 when the IMF Mission Staff led by Stephane Roudet arrived in the country to continue discussions on reaching a Staff-Level Agreement (SLA).
It continued its resurgence when the country’s Finance Chief, Ken Ofori-Atta, announced the government’s Domestic Debt Exchange Programme (DDEP) on December 5, 2022, indicating government’s willingness to restore the country’s debts to a sustainable level.
By Vincent Kubi