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in Economy, Sub Top Stories2

Forex Bureaus Association of Ghana Predicts the Cedi to Appreciate Against the Dollar Due to Creditor assurance of $3bn IMF loan

M.Cby M.C
May 17, 2023
Reading Time: 3 mins read
Cedi Posted Mixed Performance in 2021- Databank Research

50 cedi note and the Dollar

Dr. Alex Akpabli, the Vice President of the Forex Bureau Association of Ghana, has predicted a surge in the local currency against the US dollar owing to the assurances by the creditors committee as a precursor for the $3 bilIion IMF loan.

Dr. Akpabli disclosed that members of the association are hopeful that the $3 billion Extended Credit Facility from the IMF would be secured soon, which would boost confidence in Ghana’s economy and help struggling businesses.

According to the Vice President of Association, once the funds are credited to the Bank of Ghana’s account, the country’s economy would bounce back and become sound and robust.

“The cedi will continue to gain value in the coming days, following the successful financing assurance secured from Ghana’s external creditors under the G-20 Common Framework to help restructure the country’s debt.”

Dr. Alex Akpabli

Meanwhile the Ghanaian economy has been on its knees for the past 2 years as unsustainable debt situation and its impact on the country’s reserve, which put much pressure on the local currency.

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However, the recent happenings in the form of the announcement by the creditors committee has brought some sort of stability to the market which has been struggling against the American greenback.

Successful Deal to Shore Up the Value of the Cedi

The Vice President of the Forex Bureau Association of Ghana, meanwhile, expressed optimism that the successful deal will shore up the value of the cedi.

The expected gains of the cedi against the dollar and other major foreign currencies this week is expected to further boost investor confidence in the Ghanaian economy. As of today, the cedi has gained further grounds to sell at GH¢11.78 to one American greenback, which is a significant improvement since March 2023 when it began to record stability against the world’s most important currency.

The cedi has also recorded stability against other major foreign currencies such as the pound and euro, going for GH¢14.90 and GH¢12.97, respectively. These developments are good news for businesses and the Ghanaian economy as a whole, as they indicate that the country is on the path to economic recovery.

However, there are still challenges to be faced in the near future. The country’s debt burden is still significant, and there are concerns that the IMF deal may not be enough to bring about long-term stability. Furthermore, the impact of the COVID-19 pandemic on the economy is still being felt, with many businesses struggling to stay afloat.

Despite these challenges, the optimism expressed by the Forex Bureau Association of Ghana is a positive sign, indicating that the country is moving in the right direction.

If the successful deal with the IMF is secured, it could go a long way towards restoring investor confidence and boosting economic growth. It remains to be seen how events will unfold in the coming weeks and months, but the signs are encouraging for Ghana’s economic future.

Meanwhile, the prediction by the Dr Akpabli is in tandem with the one predicted by Fitch Solutions. Fitch Solutions predicted last week that the Ghanaian currency will end the year on a strong note, with an exchange rate of GH¢12.40 to one US dollar.

READ ALSO: Finance Ministry Engages Traders in Accra on Fraudulent Financial Schemes

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The numbers tell a powerful story of strategic execution, disciplined lending, and a leadership team committed to sustainable growth. Bad Loans Fall Dramatically The bank’s total non-performing loans have also seen a dramatic reduction over the four-year period. From GH¢334 million recorded in 2021, the figure has now dropped to just GH¢28 million in 2025. Industry analysts say this sharp decline reflects a deliberate and aggressive approach to loan portfolio management, one that prioritizes risk identification, credit discipline, and rapid intervention. For many financial observers, this is not merely a statistical improvement. It is evidence of a bank that has transformed its internal credit systems and strengthened its ability to manage lending risk in a highly competitive market. UBA Ghana’s performance is being viewed as a model for other financial institutions seeking to improve balance sheet quality while still expanding lending activities. Strong Risk Culture Drives Results According to Kenneth Amponsah, the achievement did not happen overnight. He explained that the bank adopted a consistent and structured approach to managing credit risk across every stage of the lending cycle. He noted that the improvement in the bank’s loan quality was the result of stronger lending standards, improved loan screening procedures, tighter monitoring systems, and faster recovery mechanisms. The bank’s risk management strategy focuses on ensuring quality at the point of loan origination while maintaining strict oversight throughout the life of each facility. This includes strategic portfolio planning, efficient approval processes, proper documentation, collateral verification, real-time account monitoring, and proactive loan recovery. Banking experts say such a full-cycle approach is critical in today’s economic environment, where loan defaults can quickly erode capital and investor confidence. Recovery Efforts Yield Strong Returns One of the strongest drivers behind the bank’s improved asset quality has been its recovery operations. UBA Ghana has significantly strengthened its debt recovery framework, resulting in consistent gains over the years. In 2025 alone, loan recoveries reached an impressive GH¢168 million, highlighting the effectiveness of the bank’s recovery teams and internal enforcement systems. This strong recovery performance has helped the bank clean up its balance sheet while improving liquidity and strengthening capital resilience. Analysts believe the recovery figures also demonstrate the bank’s ability to engage customers proactively while maintaining professional relationships and ensuring compliance. Leadership Applauds Team Performance Commenting on the achievement, Bernard Gyebi praised the collective effort of the bank’s staff, management, and board. 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