The Ghana cedi has soared to GH¢16 per dollar on the retail market after weeks of relative stability.
This is the average rate at which most forex bureaus are selling the dollar.
The recent change indicates that the pressure on the Cedi’s depreciation is still ongoing as the US dollar strengthens.
However, financial analysts believe there is no cause to panic yet as this could be a result of a weekend bump.
They expect the local currency to hold steady at GH¢15.90 till November 2024 when the Christmas festivities approach.
— CediRates (@CediRates) August 26, 2024
Against the pound, the cedi has so far depreciated by 20.8%. It is trading at GH¢19.10.
It has also lost 18.4% in value to the euro. It is selling at GH¢16.09.
According to the Bank of Ghana’s July 2024 Summary of Financial and Economic Data, the Ghana Cedi depreciated by approximately 19.6% against the US dollar on the interbank forex market as of July 2024.
This was lower than the about 21% loss in value to the American greenback on the retail market.
According to the data, the Cedi lost 7.7% in value to the dollar in March 2024 and depreciated by 10.5% against the dollar in April 2024.
It again 15.9% and 18.6% in value to the world’s most important currency in June 2024 and July 2024.
The GH¢16 mark comes at a time when the International Monetary Fund has lifted restrictions on dollar auctions by the Bank of Ghana after strong reserve build-up under a $3 billion economic recovery programme.
Analysts expect this lifting of restrictions to further strengthen the cedi.
Cedi stabilised against the dollar
The cedi extended its rally against the US dollar two weeks ago, amidst rising corporate demand.
The market continued to cling to a potential rate cut by the US Federal Reserve soon, contributing to the weakening American greenback.-