Successful restructuring of $13bn debt, IMF staff-level agreement bolsters cedi's performance

The Ghana cedi experienced a modest recovery against the US dollar and other major currencies last week, following news that Ghana had secured substantial participation from Eurobond holders to restructure $13 billion of its international debt.

Additionally, the International Monetary Fund (IMF) reached a Staff Level Agreement with the Ghanaian government on the Extended Credit Facility programme on Friday, October 4, 2024.

The cedi appreciated by 0.09% against the US dollar over the week, closing at a mid-rate of GH¢16.19 per dollar.

It also saw a 0.35% gain against the pound and a 0.28% rise against the euro.

The currency's improved performance is expected to continue in the short term, with the cedi currently trading at GH¢16.22 to the dollar on the retail market.

However, the year-to-date depreciation against the US dollar remains significant at around 22%.

Pending IMF board approval, Ghana is set to receive $360 million in financing this week, a move that could bolster the country's foreign exchange reserves and strengthen supply-side interventions.

Market analysts predict the cedi could see further gains in the coming weeks as positive sentiment grows in anticipation of the IMF funds being released.