Forex Bureau Association predicts Cedi surge against dollar following creditor assurance of $3bn IMF loan
Ghana’s economy has been in a state of turmoil in recent times, as the country struggles with its debt burden and the associated impact on the local currency. However, the Forex Bureau Association of Ghana has predicted that the cedi will continue to gain value in the coming days, following the successful financing assurance secured from Ghana’s external creditors under the G-20 Common Framework to help restructure the country’s debt.
This announcement has brought some much-needed stability to the local currency, which has been struggling against the US dollar and other major foreign currencies. The Vice President of the Forex Bureau Association of Ghana, Dr. Alex Akpabli, has expressed hope that the successful deal will shore up the value of the cedi.
Speaking in an interview, Dr. Akpabli said that the association’s members were hopeful that the $3 billion Extended Credit Facility from the IMF would be secured soon, which would boost confidence in Ghana’s economy and help struggling businesses. He added that once the funds were credited to the Bank of Ghana’s account, the country’s economy would bounce back and become sound and robust.
The expected gains of the cedi against the dollar and other major foreign currencies this week is expected to further boost investor confidence in the Ghanaian economy. As of May 16, 2023, the cedi had gained further grounds to sell at ¢11.78 to one American greenback, which is a significant improvement since March 2023 when it began to record stability against the world’s most important currency.
The cedi has also recorded stability against other major foreign currencies such as the pound and euro, going for ¢14.90 and ¢12.97, respectively. These developments are good news for businesses and the Ghanaian economy as a whole, as they indicate that the country is on the path to economic recovery.
However, there are still challenges to be faced in the near future. The country’s debt burden is still significant, and there are concerns that the IMF deal may not be enough to bring about long-term stability. Furthermore, the impact of the COVID-19 pandemic on the economy is still being felt, with many businesses struggling to stay afloat.
Despite these challenges, the optimism expressed by the Forex Bureau Association of Ghana is a positive sign, indicating that the country is moving in the right direction. If the successful deal with the IMF is secured, it could go a long way towards restoring investor confidence and boosting economic growth. It remains to be seen how events will unfold in the coming weeks and months, but the signs are encouraging for Ghana’s economic future.
