The cedi is expected to remain stable due to an expected increase in foreign currency from tourists, recent funding from the International Monetary Fund (IMF), and the successful conclusion of peaceful elections.

Over the past month, the cedi has gained value against major international currencies, thanks largely to efforts by the Bank of Ghana (BoG).

Last week, the cedi held steady against key currencies, with the exchange rate staying at GH¢16.25 to US$1. This stability is partly due to the central bank injecting US$240.4 million into the market to meet demand.

“The FX market appeared quite balanced last week,” financial analysts at Databank said in a recent note to investors.

The recent approval of the third review of its loan program by the IMF has boosted confidence in the market. The IMF has released US$360 million immediately, raising the total amount disbursed under the program to US$1.96 billion.

Experts think this will have a positive effect on the market.

“We believe the successful third review would bolster investor confidence and help tame speculative demand for FX,” Databank said.

Along with these developments, the extra foreign currency coming in during the festive season is expected to support the central bank’s efforts to stabilize the market.

The Ghana Tourism Authority (GTA) and the Ministry of Tourism, Culture, and Arts have predicted that around two million international tourists will visit Ghana in 2024.

This influx is expected to bring in over US$3 billion in revenue, thanks to the 'Beyond the Return' initiative. By mid-2024, tourism officials reported that 600,000 international visitors had already arrived, with another 1.3 million expected in the second half of the year.

“We envisage the tranche disbursement, coupled with seasonal FX liquidity as we approach the festive seasons, will augment the central bank’s market intervention and help stabilise the local unit,” Databank predicted.

Adding to the positive economic narrative, the recent peaceful elections have further strengthened market confidence. The resounding victory by President-elect, John Dramani Mahama, and the swift concession by Vice President Dr. Mahamudu Bawumia have driven positive market sentiments.

“We believe this will continue to boost market confidence and help stabilise the cedi.”

Some experts are worried about the central bank’s recent actions in the foreign exchange market.

They’ve noticed that the bank didn’t provide details on its reserves for November 2024 in its latest report, even though it mentioned the cedi’s improvement during that time.

There are also concerns that the cedi could come under pressure in the first part of 2025 when investors typically take profits.