The Ghana cedi extended its recent gains against the US dollar, kicking off the week on a high note.
OilCity Radio checks at forex bureaus show that the local currency gained 10 pesewas early on February 6, 2023, to sell at 10.40 pesewas to the dollar.
This reduced its year-to-date retail loss.
The same can be said for the pound and the euro, with the cedi currently trading at 14.80 and 13 respectively.
Last week, the cedi appreciated 3.1% against the US dollar. It had risen in value by about 0.78% in the previous week.
Many market observers and analysts are surprised by the abrupt change in the performance of the local currency, especially given that the country’s reserves have plummeted to about 2.7 months of import cover, despite the government’s efforts to revive the fiscal economy.
However, the recent resurgence of the cedi could indicate that investors are confident that an International Monetary Fund bailout program will be implemented soon.
According to Bloomberg, the local currency will depreciate by 38.8% against the US dollar in 2022.
It began the year at 11.60 and had lost about 19% of its value to the US dollar by the first month of 2023, according to the Bank of Ghana’s January 2023 Summary of Economic and Financial Data.
