The Ghana cedi is struggling, having lost 15.16% of its value against the US dollar so far this year. This makes it one of the worst-performing currencies in Africa in 2024. Currently, one US dollar can be exchanged for GH¢14.40 at forex bureaus.
The cedi’s value is expected to keep falling in the short term due to a shortage of foreign exchange. Despite efforts by the Bank of Ghana to inject more money into the market, the cedi’s value continues to drop.
Last week, the cedi’s decline accelerated due to high demand from businesses in the energy and manufacturing sectors. The Bank of Ghana’s attempts to sell more dollars and provide liquidity to oil marketing companies failed to stop the cedi’s slide, as demand outstripped available foreign exchange.
In the retail market, the cedi lost 2.97% of its value against the US dollar, compared to 0.90% the previous week. This means it has lost 14.11% of its value so far this year. The cedi also lost value against the pound and euro, down 17.63% and 12.11% respectively.
However, experts predict that things will improve in the second quarter of 2024, once the International Monetary Fund (IMF) releases more funds to Ghana as part of its support program. This will provide much-needed liquidity and help stabilize the cedi’s value.
