Cedi strengthens against dollar on news of Ghana reaching Staff Level Agreement with IMF
The cedi recorded strong gains against its anchor currency (dollar) on Tuesday morning hitting GHS 11.50 to a dollar per official exchange rates released by the Bank of Ghana (BoG).
Recorded gains by the cedi was on news of Ghana reaching a Staff-Level Agreement with the International Monetary Fund (IMF).
The cedi since last week – December 5, 2022 – when the Finance Minister Ken Ofori-Atta announced the Domestic Debt Exchange Programme (DDEP), started recording some gains against the dollar and other major trading currencies.
This is indicative of growing renewing confidence in the Ghanaian economy.
The announcement and subsequent implementation of the DDEP, is indicative of government’s commitment to restoring the country’s debt to a sustainable level.
The IMF staff and the Ghanaian authorities have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.
The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery. To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation.
In addition to a frontloaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the program envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.
