The Ghana cedi has suffered a significant decline against major currencies, with the US dollar bearing the brunt of its depreciation.
According to the Bank of Ghana, the cedi has lost nearly 20% of its value to the dollar on the interbank market as of July 2024, while the retail market has seen an even steeper drop of 21%.
The local currency has been on a downward trajectory since the beginning of the year, with particularly sharp declines in March, April, and June.
The cedi’s performance against the pound and euro has also been dismal, recording losses of 20.8% and 18.4%, respectively.
However, there appears to be a recent glimmer of hope. Last week, the cedi managed to gain ground against the dollar, buoyed by increased corporate demand and expectations of a potential interest rate cut in the US.
This slight recovery marks the second consecutive week of gains for the local currency.
Despite this temporary respite, the overall trend for the cedi remains negative, and experts warn that challenges persist.
The Bank of Ghana’s data reveals a widening gap between the interbank and retail exchange rates, indicating ongoing market volatility.
Key figures:
- Cedi depreciation against the US dollar: 19.6% (interbank), 21% (retail)
- Cedi depreciation against the pound sterling: 20.8%
- Cedi depreciation against the euro: 18.4%
- Average retail exchange rate: GH¢15.60/$
- Bank of Ghana exchange rate: GH¢14.78/$
