Cedi records marginal appreciation against dollar – Ghanacrusader

The Ghanaian cedi has started to appreciate slightly in relation to its main trading partner, the dollar in the market.

Checks on the market show that on Thursday, March 14, the local currency appreciated by 5% against the dollar to be around 5.60 GH ¢, against about 5.90 GH ¢ Tuesday and Wednesday last .

– Publicity –

Checks with some key banks on the foreign exchange market in the country confirm the marginal stability of the local currency Friday, March 15, 2019, closing around 5.56 GH ¢.

JoyBusiness's report, indicating its commitment to treasurers, currency traders and even people close to the Bank of Ghana (BoG), said the move had been largely influenced by the resumption of some dollar injections by the BoG last week. , which some market players describe as significant.

It was after the Bank of Ghana achieved the objective of the IMF program, which required it, to build dollar reserves to a certain level by the end of December 2018, which would have allowed BoG to exceed his goal.

However, according to some sources, the market and some investors seem to have bought the badurance of Finance Minister Ken Ofori-Atta, that cedis would stabilize in two weeks, as well as parliamentary approval of bridge loan $ 750 million from Standard Chartered Bank.

This has led some customers to sell dollars. All of these developments would increase the dollar supply in the market, which could help stabilize the cedi in the short term.

Earlier, the Bank of Ghana (BoG) said it had injected a minimum of $ 800 million into the country's reserves to stabilize the cedi against major international currencies, including the dollar.

The head of the financial markets of the central bank, Mr. Steven Opata, told the Daily Graphic that the accumulation of more dollars would help increase the net international reserve (NIR) to about $ 4 billion, enough to give confidence in the system and help stabilize the free fall of the local currency.

This has been made necessary by the depreciation of the cedi since January of this year. Data from the central bank showed that the cedi lost about 3.6% of its value against the US dollar, as the international investment community sold some of their investments in local securities and transferred their funds to the US. foreign, partly leading to a fall of the cedi.

This created some apprehension among the business community, prompting various private sector badociations to urge the central bank to find a solution to depreciation in order to mitigate the impact on their operations.