Cedi hits GH¢14.00 to a dollar; depreciates 12.08%

The Ghana cedi has hit GH¢14 to a dollar as the depreciation pressures continue unabated.

This has culminated in its year-to-date loss of about 12.08% to the American greenback.

Checks by Joy Business indicate that most forex bureaus are selling the dollar for GH¢14 cedis on average to the American greenback.

Most analysts had anticipated the local unit to extend its depreciation against the dollar this week.

This is despite Fitch Solutions predicting that the cedi will end the year at GH¢12 cedis 25, arguing it will recoup some of its recent losses in the months ahead.

The London-based firm believes the local unit will strengthen as the government makes progress regarding the restructuring of its commercial debt.

Dollar remains stronger globally

In recent times, the US dollar has continued to remain stronger, as the rising US treasury yields firmed the American greenback globally.

The US inflation quickened to 3.5% year-on-year in March 2024, backed by higher energy and shelter costs. Following the developments, the Federal Reserve announced that interest rates need to stay higher for longer to beat inflation to the 2% medium-term target.

The announcement saw the US dollar index rise 101 basis points week-on-week along with US treasury yields, which put most African currencies on the back foot last week.