Ghana Cedi Outperforms Other Currencies Against Dollar Ahead Of Disbursement of IMF Cash

Ghana Cedi Outperforms Other Currencies Against Dollar Ahead Of Disbursement of IMF Cash

  • The Ghana cedi has been found to be performing strongly against the US dollar over news that Ghana's IMF bailout request will be successful
  • Bloomberg for instance says the local currency has made a remarkable 33% gain since November last year
  • Currently, the Ghana Association of Forex Bureau Operators quotes a GH¢11 selling price for $1 and a GH¢10 buying price

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Currency trackers have identified that the Ghana cedi is outperforming other international trading currencies against the dollar following news that the IMF Board has okayed Ghana's request for a $3 billion bailout.

Bloomberg reports that its currency tracker has detected that Ghana's local currency has made a remarkable 33% gain since November.

The Ghana cedi is performing strongly against the US dollar
Creative images showing wads of Ghana cedi notes (L) and wads of US dollar notes. Source: Getty Images
Source: Getty Images

According to the report, this marks the highest among approximately 150 tracked currencies.

"Investors have also enjoyed strong returns from Ghana’s dollar bonds, delivering nearly 12%, surpassing the 3.6% average for emerging and frontier markets in a Bloomberg index," Bloomberg explained.

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Analysts believe the positive sentiment surrounding the news that the first part of the $3 billion loan, some $600 million, will arrive this week has contributed to the cedi's good showing.

The Ghana Association of Forex Bureau Operators quotes a GH¢11 selling price for $1 and a GH¢10 buying price for a dollar. Last week, $1 sold for about GH¢12.

The cedi is showing strength against the dollar
The exchange rates advertised by the Ghana Association of Forex Bureau Operators show the cedi is improving against the major trading currencies.
Source: UGC

IMF to grant Ghana's request for $3bn loan after securing assurance under G20 common framework

Meanwhile, YEN.com.gh has reported that Ghana is on track to receive $600 million this week, representing the first part of the total $3 billion loan from the IMF.

This milestone was achieved after Ghana secured the assurance under G20 Common Framework.

The G20 Common Framework deals with the implementation of an IMF-supported reform programme for low-income countries, among other things.

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Steve Hanke slams Akufo-Addo as "master of economic mismanagement"

However, Professor Steve Hanke has slammed Nana Akufo-Addo for mismanaging Ghana's economy.

The applied economist has described Ghana's president as the master of economic management in a tweet on May 15, 2023.

The academic at US-based John Hopkins University said he is not surprised that Ghanaians have lost hope in the direction Ghana is heading.

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Source: YEN.com.gh

Authors:
George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.