Cedi Appreciates Against Dollar After “Economic Maguire” and Ofori-Atta Secure Staff-Level Deal With IMF

• Ghana's cedi has been appreciating impressively in recent times against the dollar and other trading currencies
• On Tuesday, December 13, 2022, BoG approved rates show $1 is selling for GH¢11.5, whereas last month $1 sold for GH¢15
• A staff-level agreement between Ghana and the IMF, in which Bawumia and Ofori-Atta played major roles, has been attributed to the cedi's gains

There have been major changes on the foreign exchange front with respect to the Ghana cedi as the local currency continues its impressive appreciation against the dollar and other major trading currencies.

Bank of Ghana approved rates for the interbank market show the cedi is continuing its appreciation from last week when it gained 10% of its value back in about five days.

On Tuesday, December 13, 2022, BoG approved rates show $1 is selling for GH¢11.5. Also, £1 is selling for GH¢14.17.

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On Monday, November 14, 2022, $1 was selling for GH¢14.54 and in October the $1 hovered close to GH¢15 for a long time.

The development has been attributed partly to the staff-level agreement Ghana has clinched with the International Monetary Fund (IMF) in Ghana's efforts to get a $3 billion bailout.

The agreement was reached after meetings between the IMF team and a team of government officials who presented policy reforms that can restore macroeconomic stability and debt sustainability while protecting the vulnerable.

Ghana is hoping to return the cedi to its glory days when $1 sold for GH¢6 just last February 2022.

“Economic Maguire” and Ofori-Atta Secure Major Win For Ghana's Economic Crisis

The IMF team met with the finance minister Ken Ofori-Atta, the vice president Dr Mahamudu Bawumia, aka "Economic Maguire", and the governor of the Bank of Ghana Dr Ernest Addison.

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YEN.com.gh understands that the staff-level agreement signifies a major progress towards securing the bailout deal, however it is subject to approval of IMF Management and Executive Board.

Also, YEN.com.gh sources say the conditions precedent for the IMF deal are as follows:

1. Structural reforms

- Enhanced tax compliance and other revenue measures

-Strengthen public expenditure commitment control

-Improve fiscal transparency and accountability including reporting of arrears.

-Improve management of public enterprises

-Tackle Structural challenges in energy and cocoa sectors.

2. Restore debt sustainability

- Comprehensive debt restructuring

- sufficient assurance and progress of debt restructuring.

3. Restore macroeconomic stability

- Reduce inflation

- enhance resilience to external shocks

- Improve market confidence.

On Tuesday, after the IMF staff-level agreement was announced, finance minister Ken Ofori-Atta said when its finally approved by the IMF Board the agreement will help restore macroeconomic stability, tackle inflation, and strengthen the local currency.

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“Truly, the eventual conclusion of the program will assist us in our efforts to restore stability, tackle inflation, and strengthen our currency," he said.

Cedi Depreciation: NPP Accuses NDC Of Hiring TikTokers To Speculate On Local Currency

Meanwhile, YEN.com.gh reported in a separate story that the governing New Patriotic Party (NPP) has accused the NDC of being the brain behind the depreciation of the cedi.

A Deputy Communications Director of the NPP, Rabi Salifu says the NDC hired Tiktokers to speculate on the local currency.

This comes on the heels of a recent rise in the cedi which has seen it move from the worst to the best currency.

Source: YEN.com.gh