The cedi demonstrated a rare performance to survive the seasonal first-quarter blues by losing only 1.4 percent of its value against the dollar as compared to 14.6 percent in the same period last year.
The local currency’s performance is a departure from previous years’ weak performance when the cedi gained notoriety for its consistent depreciation.
In the first quarter of 2014, the cedi depreciated by close to 18 percent in a year that saw the central bank introduce a raft of forex messages which were later repealed after a severe backlash from the public.
With Ghana going to the polls in November, some analysts feared government’s fiscal imprudence could translate into poor cedi performance amid poor forex inflows, especially due to lower prices for commodities.
The cedi has however stood its ground, nearly eroding all gains the dollar has made since the turn of the year.
At the beginning of the year, a dollar cost GH¢ 3. 7823. The local currency closed the quarter trading at GH¢3.8365 to a dollar, indicating a depreciation of a little above I percent.
Dr Kofi Wampah, the immediate past Governor of the central bank, was widely criticised for his inability to keep the cedi stable.
Source: B &FT