The Ghana cedi has depreciated about 19.5% against the US dollar on the interbank forex market as of July 2024.
This is slightly less than the 21% loss in value observed in the retail market.
According to the Bank of Ghana’s July 2024 Summary of Financial and Economic Data, the cedi lost 7.7% of its value against the dollar in March 2024, followed by a 10.5% depreciation in April. It then fell by 15.9% in June and 18.6% in July.
On the retail market, the cedi averages GH¢15.60 per dollar, while the Bank of Ghana rates it at GH¢14.78.
Against the pound, the cedi has depreciated by 20.8%, trading at GH¢19.10. It has also weakened by 18.4% against the euro, with a current rate of GH¢16.09.
Recently, the cedi showed signs of stabilization against the dollar.
Last week, it gained 0.29% week-on-week, closing at GH¢15.64/$ on the retail market.
This marks the second consecutive week of improvement, driven by rising corporate demand and expectations of a potential rate cut by the US Federal Reserve.
On July 16, Fitch Solutions revealed that the Ghana cedi is expected to recoup some losses against the dollar in the coming months.
It projected the cedi to regain value by 9.0% by year-end from the July 9, 2024 spot.
The cedi is presently going for GH¢15.70 cedis at the Forex bureau.
It has depreciated by about 20% against the dollar this year.
Meanwhile, Ghana has agreed with international bondholders on July 8 to restructure external debt totalling US$13 billion.
The agreement is expected to be finalized by September 2024.
Fitch Solutions anticipates this will enhance investor confidence in Ghana, boost capital inflows, and strengthen the local currency.
According to the London-based firm, this is due to improved investor sentiment, higher dollar inflows, and easing external conditions.