According to the latest Bank of Ghana report, the value of the local currency—the cedi—has fallen against all its major trading currencies.
The September 2024 Summary of Economic and Financial Data by the Bank of Ghana puts the Cedi’s depreciation against the dollar at 24.3 %. This represents an increase from the 21.3% recorded in August 2024.
On a year-by-year basis, the depreciation rate has jumped marginally from 22.9%. In real terms, the local currency lost its grip on the American greenback. The American greenback is currently trading at GHS 15.70 to a dollar relative to GHS 11.12 in September last year.
With regard to the Pound, the cedi depreciated by 27.7% compared to the 22.9% in the same period in 2023. For the Euro, the rate of depreciation was pegged at 25.0%, up from 22.3%.
This rate of depreciation comes at a time when the government needs to adopt long-term measures that will address the pressure that mounts on the local currency.
Players expected relative stability of the cedi after Ghana received the second tranche of its USD 3 billion Extended Credit Facility with the International Monetary Fund (IMF) earlier this year. This was together with other foreign inflows from donor partners.
There is a possibility of an increase in the demand for the dollar, coupled with high imports, which may force the cedi to lose some more value come December because of the yuletide.
Source: citinewsroom
