The cedi is anticipated to have a mixed performance this week as investors continue to analyze the 2023 budget in light of the impending sovereign debt treatments.
According to Databank Research, if the government’s proposed gold-for-oil barter deal is successfully implemented, Ghana’s foreign exchange reserve will probably remain stable to stabilize the value of the cedi.
According to the Bank of Ghana’s assessment of economic and financial data, the gross international reserve was constant at $6.67 billion at the end of October 2022, backed by a 7.24% month-over-month improvement in the trade balance.
As investors analyzed the 2023 budget and the government’s plans to purchase oil using gold rather than US dollars, the cedi was comparatively stable last week on the interbank market. It lost 0.67% versus the American “greenback” to close at almost $14.85 to one US dollar on the retail market, while it ended the week at an indicative rate of $13.11/US$ on the interbank market.
In the retail market, the cedi showed a 3% week-over-week decline against the pound and 0.99% against the euro.
BoG sets the cedi to dollar exchange rate at 54%.
The Bank of Ghana estimated that in roughly 11 months of 2022, the cedi’s rate of depreciation against the dollar will be 54.2%.
However, the Central Bank stated that the cedi to dollar exchange rate was 13.10 to one US dollar in its November 2022 Summary of Economic and Financial Statistics.