Following the good performance of the Ghana cedi, people have been swarming forex bureaus in the country to exchange their foreign currencies, particularly US dollars.
Before the International Monetary Fund (IMF) announced that a staff-level agreement had been reached with the Government of Ghana, the Ghana cedi’s revival was unstoppable.
On Wednesday, December 14, 2022, the currency was selling for around GH8.50 to one US dollar, according to reports, and the rate may even improve.
Aside from the dollar, the local currency has gained value against the pound and the euro, which are currently trading at GH12 and GH9.50 to the other two major foreign currencies.
Within 14 days, the local currency (cedi) regained more than 33 percent of its lost value against the dollar.
This comes after the cedi lost nearly 60 percent of its value against the dollar in the final days of November 2022.
Because of the rapid appreciation of the cedi against the dollar, the local currency has become the best-performing currency against foreign currencies.
The dollar fell by 12% on Wednesday alone, giving the cedi the advantage of appreciating by 12% to GHS8.50 to $1.
The cedi began to strengthen against its dollar counterparts on December 1, 2022, when the IMF Mission Staff led by Stephane Roudet arrived in the country to continue discussions on a Staff-Level Agreement (SLA).
It resurrected further when the country’s Finance Minister, Ken Ofori-Atta, announced the government’s Domestic Debt Exchange Programme (DDEP) on December 5, 2022, indicating the government’s willingness to reduce the country’s debts to a manageable level.