Good News: Cedi Rebounds As Debt Suspension Eases Dollar Demand

Information gathered by ghlatest.net indicates Ghana’s embattled cedi has finally rebounded against the US dollar in the third month of the year in line with government’s decision to suspend external debt payments to draw down demand for greenbacks in the local foreign exchange market.

Unilaterally, the West African nation halted payments on eurobonds as well as other external debt in December, 2022, pending an agreement with creditors that is needed to unlock an International Monetary Fund bailout.

According to some traders, the impact of these financial activities is beginning to filter through to the currency after it lost it ground in the month of January and February.

One of the traders named Samuel-Parker Longdon stated that putting a stop to debt servicing means Ghana will not be required to pay $516 million in Eurobond coupons over the first half of the year 2023.