Cedi notes
A currency analyst and Research Lead at GCB Capital, Courage Boti, has noted that the cedi may see some appreciation as news of the coming of the first tranche of the $3 billion from the International Monetary Fund makes waves.
He expressed optimism that the news may continue to cause some more gains for the cedi as it already has.
The cedi has seen some gains this week to sell at GH¢11.80 after Ghana fulfilled all pre-conditions to be able to secure an IMF bailout.
On May 15, 2023, Bloomberg reported that the cedi strengthened by 5.3%, the most since April 3, 2023.
“The appreciation of the cedi has already started except that it is a momentum that I believe is continuing. My expectation is that this news could even deepen it and that concern of reserve vulnerability will ease a bit. The start of the program also eases investor concern and uncertainty in the economy. These are some of the things that will ensure that the cedi regains its lost value,” he was quoted by citinewsroom.com.
The analyst added that the IMF deal will boost Ghana’s balance of payment and also offer some stability to the local currency.
“Once IMF as a trusted partner comes in with the help of the authorities, the expectation is that the buffers will improve gradually. I believe these are the things that will help the cedi appreciate a bit. This is positive news and I believe that we will see some corrections in the next few weeks or months until some stability is restored,” Courage Boti added.
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