Ghana’s currency has maintained its upward trend against the US dollar and all other major foreign currencies.
In the last two weeks, the cedi has made a comeback against all major trading currencies.
On the interbank market, the local currency is currently trading at 8 to the dollar.
However, it is higher on the forex or retail market, with an average rate of 10.50.
The pound and euro are also selling at 9.80 and 8.50 cedis, respectively.
This is according to the Bank of Ghana’s official interbank exchange rates published on Friday, December 16.
The cedi’s recent rally reflects more of a US dollar decline, with some optimism about the cedi-US dollar supply balance heading into next year.
It is unclear why the local currency has suddenly improved, but some market analysts attribute it to a weakening of the US dollar against global currencies, the successful launch of a debt restructuring program, and the Staff-Level Agreement reached by the government with the International Monetary Fund (IMF).
Following this, the Ghana Union of Traders Association (GUTA) has urged its members to lower their prices.
According to the association, it is critical for traders to transfer recent gains in the local currency by lowering the prices of their goods during the holiday season.