The Ghanaian cedi continued to face intense pressure, dropping another 3.95% against the U.S. dollar in October 2024 and pushing its year-to-date depreciation close to 29%.
This decline follows a recent statement from the Governor of the Bank of Ghana, Dr. Ernest Addison, who expressed optimism that the cedi would soon strengthen against the dollar.
However, last week alone, the cedi fell by 1.50% against the British pound and 0.69% against the euro.
Despite the apex bank’s efforts to stabilise the currency—such as auctioning $20 million to Bulk Oil Distributors (BDCs) and selling an additional $81.47 million in a 7-day forward auction—these interventions have barely met the soaring demand for foreign currency.
On November 4, 2024, the cedi opened the week trading at GH¢17.10 to the U.S. dollar on the retail market.
In response to persistent demand, the Bank of Ghana announced it would resume daily interventions in the spot market to help satisfy outstanding corporate foreign exchange requirements.
Analysts expect this new approach to offer the cedi some stability over the coming weeks.
Nonetheless, ongoing high demand pressures and a likely strengthening of the U.S. dollar—driven by the upcoming U.S. presidential election and a possible Federal Reserve rate hike—are expected to maintain depreciation pressure on the cedi.
So far in 2024, the currency has depreciated by roughly 15.57%.