The Ghana Cedi has continued its appreciation against the dollar and other major currencies this morning, after continues depreciation over the last one month.
Cedi appreciates against all major currencies today
The Cedi made some positive gains in the third successive day today, as reports have it that the Bank of Ghana has resumed the injection of increased amounts of dollars into the country.
The Central Bank found it necessary to increase its dollar injection into the market from $14 million a day to $20 million dollars a day. This enabled the Cedi to stabilize and even appreciate against the dollar, moving from GHC4 to a dollar to GHC3.3 in the month of July, only for the currency to return to its usual downward slide in the month of August, depreciating at an average rate of 7 per cent.
However, the past week has been quiet strong for the Ghana Cedi, and the positive performance continues today. The Ghana Cedi gained 14 peswas (p) against the dollar exchanging at GHC3.78. It also gained 2 peswas against the dollar exchanging at GHC4.12 in local forex bureaus.
Against the Euro, the Ghana Cedi gained 14 peswas, exchanging at GHC4.25, and in local forex bureaus it gained 1p exchanging at GHC4.64.
Against the Pound Sterling, the Cedi gainded 23p, exchanging at GHC5.80, and in local forex bureaus, it gained 1p, exchanging at GHC6.36 to the pound. The Cedi gained 1p and 2p against the South African Rand and the Chinese Yuan respectively as well.
Meanwhile, head of research at Banking and Investment Firm, Group Ndoum, has expressed delight at the the current resurgence of the Ghana Cedi.
Samuel Ampah said " The strength of a country's local currency says a lot about the economy and sends a strong message to investors. So it is important that we send a strong message that we are in control over the situation."
The financial analyst also expressed optimism that the IMF's approval of $116 million will go a long way to further stabilise the currency.
This is a position government made the some argument when it was going for the IMF bailout involving a total sum of $920 million.
According to government, apart from the revenue inflow which will be used to address the country's balance of trade deficit situation and stabilize the local currency, the IMF bail out will give the country's own home-grown attempts to revive the economy some much needed policy credibility.
Government was of the belief that, with the policy credibility will come the flow of some donor funds that have been locked up due to skepticism over government's resolve to curb excessive expenditure which will essentially get the country's economy back on track
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