The recovery of the Ghana cedi continued today March 7, 2023 as the local currency gained some 30 pesewas from last Friday March 3, 2023 pricing to lower its year-to-date loss.
The local currency is going for 12.50 at the forex bureaus.
It is coming after government rejected all the bids for the sale of Treasury bills from investors on Friday March 3, 2023. The government rather wants yields below 30%, as against the previous 35%.
Checks by Joy Business also indicates that the cedi strengthened in value against the pound and euro.
It is trading at ¢14.80 and ¢12.80 respectively to the British pound and euro.
The cedi gained some strength last week to end the week (March 3, 2023) at ¢12.80 to one American greenback.
On the interbank market, the Bank of Ghana quoted one dollar to ¢11.01.
Some analysts believe the suspension of external debt service appears to have eased the pressure on foreign exchange supply, as the country is no longer servicing most of its external debt. For instance, the January 18, 2023 Eurobond coupon ($41 million) was not paid.
Again, there’s still a ban on the sale of FX to importers of certain goods the government described as “non-essential items”.
The Ghana cedi has seen a better performance since depreciating sharply in January 2023.
Its year-to-date loss is now hovering around 19% in the retail or forex market.