The cedi could steady this week on improving dollar sales by the Bank of Ghana and mining firms to offset persistently high demand for forex from offshore investors, analysts said.
The cedi, under pressure since mid-January, plunged to a record low of 4.3850 per dollar last week, after the new government said it inherited undisclosed debt arrears of about $1.6 billion and a budget deficit of around 10 per cent.
“There are signs the government is now wary of market sensitivity to its comments and is taking measures to calm the markets,” a currency dealer at a leading bank in Accra said, adding, “We are also seeing increased forex offers that could help steady the currency in the weeks ahead.”
Backed by dollar inflows from the US$750 million Eurobond, an US$918 million IMF programme, and the US$1.8 billion cocoa syndicated loan, the cedi fared relatively well in 2016, except in December when it depreciated by four per cent to end the year at 9.6 per cent.
Mid-way through January, the cedi has so far lost more than 0.5 per cent of its value against the greenback, prompting concerns that it could be in for a tough time this year.