Cedi Depreciates 2.2% Against Dollar In January 2024, $1 now GH₵12.43

-

Since January 2024, the Ghana cedi has depreciated by 2.2% against the US dollar, despite the approval of the International Monetary Fund (IMF) programme. 

The Board approved the first review of the programme on January 19, 2023, yet the local currency weakened against major trading currencies due to a stronger US dollar. The US dollar index closed 100 basis points stronger at 103.24 after robust US economic data was released, indicating a slow policy rate cut by the Fed.

Related To This: Cedi Depreciates By 1.22% Against Dollar

Despite the Bank of Ghana's $11.6 million spot market support, the cedi ended the week's trades 1.60% weaker at a mid-rate of GH¢12.53/on the retail market. Additionally, the local currency experienced a 1.12% and 1.11% week-on-week decline against the pound and euro on the retail market.

Analysts anticipate improved investor sentiment following an expected inflow of a $600 million bailout package and other budgetary support from the World Bank, which should help stabilize the cedi's depreciation. They believe that despite corporate demand, forex market sentiment will improve with increased supply-side intervention from the IMF and World Bank cash inflow.

Related To This: Ghana and Zambia To Exit Default on Foreign-Currency Debt in 2024 - Fitch Reports

However, despite these challenges, the cedi started this week on a strong note, currently trading at GH¢12.43 to one US dollar. Furthermore, Ghana successfully agreed to restructure $5.4 billion in debt with bilateral creditors on January 12, 2024, unlocking a release of $300 million in budget support from the IDA, which will be considered by the executive board this week, as confirmed by the World Bank.

Comments

Post a Comment

Popular posts from this blog

GJA Calls For Media Blacklist on Yendi MP for Allegedly Assaulting Journalist

-
Image
In response to allegations of assault against Mohammed Aminu M. Alabira, the Northern Regional Correspondent for Citi TV, the Ghana Journalists Association (GJA) has called for a national media boycott of Farouk Aliu Mahama, the Member of Parliament for Yendi. Important industry actors have endorsed the GJA's directive: the Media Foundation for West Africa (MFWA), the Private Newspaper Publishers Association of Ghana (PRINPAG), and the Ghana Independent Broadcasters Association (GIBA). Related To This: Hawa Koomson Threatens to Sue GJA President Over Assault Allegations The coalition asked all media outlets to uphold Farouk Aliu Mahama's blacklisting till further notice during a joint press conference on Tuesday, February 6. The media professionals were put at serious risk due to the MP's purported connections to those who could potentially pose a threat to journalists. The groups emphasized, "All media houses must refrain from providing any coverage, interviews, or a
Read more

Taxes Now Serve as Punishment to Businesses - Mark Badu-Aboagye

-
Image
The Ghana Chamber of Commerce and Industry's CEO, Mark Badu-Aboagye, has expressed grave concerns about the growing burden of direct and indirect taxes placed on the country's enterprises.  During an open discussion on JoyNews' PM Express, Mr. Badu-Aboagye brought attention to the mounting difficulties that businesses are facing in light of rising expenses and financial commitments, especially with regard to tax responsibilities. Related To This: Akufo-Addo's Imposed Tax Policies Will Make The Next President Suffer - Franklin Cudjoe Mr. Badu-Aboagye expressed his dismay and emphasized the unsettling consequences of the existing tax structure, describing it as harsh and onerous for companies aiming for expansion and sustainability.  He underlined, saying, "I believe that rather than helping businesses, our taxes now serve as a punishment to them. This is because they expect you to pay, but we are unable to. They are beating us but they are telling us to keep quiet.&
Read more

Use Emission Tax Funds to Support EPA - Professor Kofi Amegah

-
Image
The University of Cape Coast's renowned environmental and nutritional epidemiology lecturer, Professor Kofi Amegah, has suggested that money from emission levies be used to support environmental protection organizations.  During his February 1 appearance on The Pulse on JoyNews, Professor Amegah emphasized how vital it is to improve the Environmental Protection Agency's (EPA) capacity to efficiently track pollution levels and strengthen environmental conservation measures. Related To This: Implementation of Emissions Levy Act Commences Today Professor Amegah emphasized the need to reallocate a portion of the proceeds from the emission tax in order to relieve the EPA's budgetary constraints, given its limited resources. He highlighted that such support would enable the acquisition of reference-based monitors, which, when installed in urban areas, can furnish essential data vital for formulating effective air pollution control policies. Additionally, the resulting data would
Read more