Ghana cedi started this week on a strong note gaining some grounds against the US dollar in the retail or forex market.
The local currency gained about 20 pesewas in value against the US dollar yesterday.
This follows a 1.61 percentage points improvement against the American greenback last week, ending the week at a mid-rate of ¢12.45 pesewas to the dollar.
It occurred despite some analysts expressing missed developments on the forex market.
Generally, there was an improved investor confidence which helped ease demand for foreign exchange, some analysts told Joy Business.
This was lifted by the Finance Minister, Ken Ofori-Atta’s visit to China to discuss a debt restructuring, which has been described as progressive with hopes of China reaching an agreement in the near term.
The visit of US Vice President, Kamala Harris to Ghana appears to also have boosted investor confidence as the US is a key player in the International Monetary Fund, which could fast-track Ghana’s support from the Fund.
Additionally, the US Federal Reserve increased its policy rate by 25bps but also announced the need to slow the policy hike cycle in subsequent meetings as inflation figures tame.
Last week, the Bank of Ghana sold only $5.5 million on the spot market, while providing no support to the Bulk Oil Distributing Companies.
The cedi clawed back 1.61% week-on-week against the US dollar to trade at a mid-rate of ¢12.45 on the retail market.
It also strengthen in value marginally against the pound and the euro, gaining 0.50% and 0.19%, respectively.
Cedi depreciates by 22.1% in March 2023 – BoG
The Bank of Ghana last week put the depreciation of the cedi to the dollar so far in the year at 22.1%.
In its latest Summary of Economic and Financial Data, the Central Bank pegged the cedi at ¢11.104 to one US dollar on the interbank market.
In February 2023, the local currency also lost 22.1% in value to the American greenback, but its depreciation in January 2023 was 20.6%. This was after the earlier estimate of 19.1% depreciation was revised.
We’ll ensure there are enough funds for 2023/2024 cocoa purchasing season – COCOBOD
COCOBOD has assured that concrete steps have been taken to ensure it is able to secure enough funds to finance its annual cocoa purchases in the 2023/2024 crop season.
Against the backdrop of a reportage by Reuters that the firm had borrowed up to $200 million from cocoa traders to plug its funding gap, COCOBOD said it had adopted a two-prong financing strategy to ensure that it obtained the required funds for the purchasing season.
A statement from COCOBOD in response to the Reuters report indicated that it had had firm assurances from its bankers of making funds available in time for the purchasing season and that a “Cocoa syndicated Loan has been laid in Parliament for consideration and approval.”
Below is COCOBOD’s full statement.
FINANCING OF PURCHASES FOR 2023/24 CROP SEASON
There have been some recent publications in the news media in relation to funds for cocoa purchases for the 2023/24 Crop Season.
We wish to brief our stakeholders on this very sensitive national issue as follows:
COCOBOD planned a two-prong financing for the 2023/2024 Crop Season in an effort to diversify Its source of funding for the annual cocoa purchases.
The strategy was therefore, to use a prefinancing arrangement with the international buyers to raise an amount of US$400 million for purchases at the beginning of the Season in September 2023.
These initial funds were expected to be augmented by an additional US$800 million loan from a syndicate of lenders by the end of November 2023. After engagements with buyers for several weeks, the arrangement was however discontinued.
Thus, since the beginning of the Season, cocoa purchases have been financed with noncollateralized cocoa sales proceeds. COCOBOD is therefore still in the process of securing the syndicated loan for the 2023/24 Crop Season.
As a matter of fact, the Board has so far received firm response from our bankers in this regard, and the Cocoa syndicated Loan has been laid in Parliament for consideration and approval.
We wish to use this medium to assure our stakeholders that the necessary arrangements have been made to secure enough funding for cocoa purchases for the year under review.
ISSUED BY: PUBLIC AFFAIRS DEPARTMENT
Ghana is a good place to do business – Bawumia tells Czech investors
Vice President Dr. Mahamudu Bawumia is actively seeking Czech investors for the country.
Dr. Bawumia emphasized that Ghana remains the best country in Africa for investment due to its stability, peace, and growth opportunities for businesses.
He made these remarks during his meeting with the Czech Prime Minister, Peter Fiala, at the Jubilee House in Accra.
“Ghana is an excellent place for doing business. We are the most peaceful country in West Africa and the second most peaceful country in Africa. It is crucial for anyone looking to invest in Africa to consider Ghana as the ideal destination for business.”
“I am confident that this will open up opportunities for our respective business sectors,” he stated.
Mahama’s ’24hr Economy’ project will revolutionize Ghana – Dafeamekpor
South Dayi Member of Parliament, Rockson Nelson Dafeamekpor, has said that the ’24-hour Economy’ project conceived by the flagbearer of the National Democratic Congress (NDC) Former President John Dramani Mahama will turn the economy around if implemented.
Mr Mahama proposed the ’24hr Economy ‘ project when he met with officials of the country’s mother workers union on Tuesday, November 7, 2023 at the start of his engagement with key stakeholders in a quest to return to power.
Dubbed ‘Building Ghana Tour’, the interactions with the stakeholders is to apprise them of the policies the next NDC administration will implement to transform the economy.
At Tuesday’s engagement, he said “NDC was left alone as the solitary voice seeking to hold the government accountable and speaking up for the voiceless Ghanaian and we were often cast out as spoilt brats who were ranting just because we have lost power.
“Today, the chickens have come home to roost and we are all affected.”
Commenting on this in a tweet, Mr Dafeamekpor said “Some concrete Examples of John Mahama’s ‘24hr Economy’ Projects include Terminal 3 at Kotoka, Tema Port Container Terminal, New Ridge Hospital, Maritime Hospital, Tema, UGMC, Legon, Kejetia Market, Accra Data Centre, the TamaleTeaching Hospital. It’ll revolutionize the economy.”