The Ghana cedi started this week on a positive note, bolstered by the Bank of Ghana’s decisive actions to stabilize the currency.
On November 11, 2024, the Central Bank intervened by selling a significant amount of dollars, strengthening the cedi.
As a result, the local currency appreciated by 0.2%, trading at GH¢16.33 to the US dollar on the interbank market.
— Bank of Ghana (@thebankofghana) November 12, 2024
However, the cedi is trading at GH¢16.75 per dollar on the retail market.
Tue 12 Nov, 2024 • 10:00 AM
💵 1 USD = ₵16.75 🔽
💷 1 GBP = ₵21.58 🔽
💶 1 EUR = ₵17.95 🔽Find bank & forex bureau rates in this thread! 🧵
— CediRates (@CediRates) November 12, 2024
Last week, the Bank of Ghana took proactive steps to ease pressure on the cedi, conducting targeted interventions through two-day and seven-day foreign exchange auctions.
These auctions saw a total sale of about US$214.04 million — the highest weekly auction recorded this year.
This substantial injection of dollars into the market helped clear some of the demand backlog, moderating the cedi’s depreciation.
Despite these efforts, the cedi experienced slight depreciation against all major foreign currencies over the past week.
It lost 0.44% against the US dollar, 0.12% against the British pound, and 0.41% against the euro.
Looking ahead, the cedi faces increased demand pressures as the festive season approaches.
With Christmas around the corner, heightened corporate demand for foreign currency and concerns over global economic uncertainties are expected to drive further pressure on the cedi.
Additionally, investors remain cautious due to rising inflationary pressures, which continue to influence market sentiment.
So far this year, the cedi has depreciated by approximately 28% against the US dollar.
As of now, it is trading at around GH¢16.75- GH¢17.00 per dollar on the retail market, reflecting ongoing challenges despite recent interventions.