The GH10.00 to $1.00 exchange rate on Bloomberg's currency dashboard has cemented the GH10.00 as the best performing currency in relation to the USD.
The cedi has recovered more than 40% of the value it had lost before the International Monetary Fund team arrived in Accra on December 1 in just two weeks.
The forex market begun the day with $1 trading at about GH 11.25 after closing at GH 11.13 the day before, according to Bloomberg's currency monitor.
Bloomberg dashboard shows a price of $10.00 to $1.
The dollar has been falling throughout the day, which has given the cedi an edge to increase by 12%.
Some financial analysts have identified the IMF staff-level agreement, US Fed monetary policy easing, and investors turning negative on the dollar for the first time since July 2021 as potential drivers of the dollar's further fall versus the Cedi. The "greenback" lost more than 4% of its value in the first 20 days of the fourth quarter, allowing for the survival of hopeless currencies like the cedi.
"Markets are waiting for evidence of a fundamental shift, and investors are more frightened of losing out since declines after a high tend to be rapid and sharp," according to Goldman Sachs' 2023 prediction.
In relation to the dollar, the cedi fell by more than 54% this year. However, since the beginning of December, it has grown by more than 40% as a result of the Finance Minister, Ken Ofori-Atta, disclosing the government's domestic debt swap scheme, the most recent IMF visit, and the disclosure of the Fund's staff-level agreement of a $3 billion rescue package.
After more than four months of discussions, Ghana and the Bretton Woods organisation have finally agreed to a $3 billion initiative, subject to the Executive Board's approval.
Mission Chief for Ghana Stéphane Roudet claims that his team "reached staff-level agreement with the Ghanaian authorities on a three-year programme backed by an arrangement under the Extended Credit Facility (ECF) in the sum of SDR 2.242 billion, or almost $3.
"The economic programme aspires to establish the groundwork for higher and more equitable growth while restoring macroeconomic stability and debt sustainability. The staff-level agreement is contingent to IMF Management and Executive Board approval and Ghana's partners and creditors receiving the required funding assurances.
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The GH10.00 to $1.00 exchange rate on Bloomberg's currency dashboard has cemented the GH10.00 as the best performing currency in relation to the USD.
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