The demand for the dollar keeps surging, causing the Ghana cedi to cross the ¢11 mark as some forex bureaus in parts of Accra are selling a dollar at an average of ¢11.2 as of the close of business on Saturday, October 8, 2022.
This has made the dollar virtually little in circulation in the forex market.
Reports indicate that the recent action by the Bank of Ghana (BoG) has yielded little return as there are few dollars in circulation.
On the interbank market, the BoG quoted the dollar at ¢9.63 (selling) on Friday, October 7, 2022.
The Cedi is also not faring well against the pound and euro.
It is going for ¢12.5 to the pound and ¢10.57 to the euro, respectively.
Analysts say the local unit continues to post heavy losses on the interbank market as unrelenting foreign exchange demand continues to weigh down the Cedi against the dollar.
But the inflows from the $1.13 billion cocoa syndicated loan will help improve supply and slow down the currency’s depreciation rate as the first tranche is expected by the end of October.
On October 6, demand for the US dollar fell marginally again, according to the latest auction of the American dollar by the Bank of Ghana (BoG).
Data from the Central Bank indicated that demand exceeded supply by $75.25 million in the latest auction.
This is compared with $82.75 million recorded a month past.
According to the sale of dollars through the Forex Forward Rates Auction to dealers, the Bank of Ghana could only supply $25 million to the dealers, largely the banks.
In August, the Ghana Cedi was identified as the worst-performing currency worldwide in a currency ranking done by Bloomberg.
The Ghanaian legal tender was placed last among 150 currencies worldwide, tracked by their performance since the beginning of the year.
The Sri Lankan rupee came second to the Cedi in the ranking.
For more than seven months, the Cedi has come under intense exchange rate pressure due to its continuous depreciation to major international currencies such as the Dollar, Pound and Euro.