Last week, the Ghana cedi gained 3.11% against the US dollar, bringing its year-to-date losses in the Forex or retail market to almost 17%.
The cedi gained 1.18% and 1.95% week on week against the pound and euro, respectively.
This was owing to the Bank of Ghana intervening in foreign exchange markets and encouraging news regarding Ghana’s ongoing debt restructuring.
The Central Bank granted $3 million on the spot market and $20 million to the Bulk Oil Distribution Companies at a forward rate of ¢12.00/$1.
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Parliament also passed a new tax bill with a revenue target of $340 million in order to strengthen fiscal consolidation and secure the IMF program. The new tax plan raises income and corporate taxes, as well as excise duties on cigarettes and alcohol.
Experts think Ghana’s success with the Chinese government discussions, along with the passage of the tax bills, would enable the country to restructure a portion of its $47 billion foreign debt and secure the IMF Board Level Agreement early this quarter.
They believe that this will help the cedi’s value versus the dollar and other major foreign currencies.
Cedi opens the week on a high note; $1 is currently worth ¢11.50.
The Ghana cedi began this week on a high note versus the US dollar.
According to Joy Business checks at several forex bureaus, the local currency gained more than 60 pesewas in value to the US dollar.
The same could be said for the pound, which rose in value versus the British currency to trade at ¢14.40.
SOURCE: myjoyonline
