In relation to several of the country's main foreign trading currencies, particularly the US dollar, the Ghana cedi has recovered more than 61% of its value.
By the end of November, the currency had lost up to 54% of its value, ranking among the poorest performers globally.
Due to the country's reliance on imports, the devalued Ghana cedi had a significant negative influence on the rate of inflation, increased the cost of living, and significantly raised all corporate operating expenses.
The local currency was, however, being marketed at GH7.99 (purchasing) and GH8.0 (selling) for one US dollar as of Friday, December 16, according to the average interbank rates used by the commercial banks for transactions and published by the Bank of Ghana.
One British pound was worth GH 9.72 when purchased and GH 9.73 when sold.
The purchasing and selling rates for the Euro were GH8.48 and GH8.49, respectively.
Many people have breathed a sigh of relief at the development, which will probably revive economic optimism and confidence while enabling careful planning.
Why is the cedi increasing?
The Bank of Ghana (BoG) has credited new monetary policies it has implemented for the recent improvements in the cedi.
Stephen Opata, the BoG's director of financial markets, asserts that the cedi's performance may be related to the BoG's decision to limit foreign exchange support to a few key commodities, such as petroleum products and medical and pharmaceutical items.
He continued by saying that the judicious management of liquidity in the financial system could possibly be responsible for the cedi's gains.
"We have also observed tightening of the monetary policy, which follows recent rises in the policy rate to 27%. This has also helped the cedi's strong run, he continued.
Despite current concerns with the proposed debt exchange scheme, he stated that "the continual climb in the policy rate will also ensure that excess cedis can be utilised to purchase government bonds and other securities."
According to Mr. Opata, who was quoted by MyJoyOnline over the weekend, these might be some of the key factors that have helped the cedi stay stable against the dollar over the last three weeks.
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