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.
In the forex bureaus, the local currency is worth ¢12.50.
That comes after the government rejected all proposals from investors for the sale of Treasury notes on Friday, March 3, 2023. The government prefers returns of less than 30%, as opposed to the prior 35%.
According to Joy Business checks, the cedi has gained value versus the pound and euro.
It is now trading at ¢14.80 and ¢12.80 to the British pound and euro, respectively.
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The cedi gained some ground last week, finishing the week (March 3, 2023) at ¢12.80 to one US dollar.
The Bank of Ghana quoted one dollar to 11.01 on the interbank market.
According to some observers, the suspension of external debt service appears to have relieved pressure on foreign exchange supply because the government is no longer servicing the majority of its external debt. The January 18, 2023 Eurobond coupon ($41 million), for example, was not paid.
Likewise, the selling of foreign currency to importers of some commodities deemed “non-essential” by the government remains prohibited.
After its severe depreciation in January 2023, the Ghana cedi has performed well.
Its year-to-date loss in the retail or foreign market is presently about 19%.
SOURCE: myjoyonline