The Ghanaian cedi returned to its downward trajectory last week, losing 9.65% against the dollar in the retail market since the start of the year.
This happened despite the intervention of the Bank of Ghana. The Central Bank auctioned USD 20 million to bulk oil distribution companies at a forward rate of GH¢ 13.23 per dollar.
The local currency lost 0.19% against the US greenback last week. It also weakened 0.90% against the pound but closed with a gain of 0. 17% against the pound.
Ghana and International Monetary Fund officials on Sunday reached a staff-level agreement on a second review of the $3 billion Extended Credit Facility.
Analysts see the move as a positive step toward securing the planned $360 million in funding.
However, the board’s approval and disbursement of funds is contingent on the country reaching agreement on a memorandum of understanding consistent with the $5.4 billion formal debt restructuring agreement reached in January 2024.
The country also failed to reach a debt restructuring agreement with two of its creditors international bond groups.
Analysts say that even if IMF board approval is not contingent on debt reform, current developments could lead to renewed instability in the market, causing investors to turn to safe haven assets.
As a result, the Ghanaian cedi may lose value this week. Meanwhile, the cedi averages GH¢13.60 per dollar at the foreign exchange bureau.