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Ghana’s cedi has become Africa’s third-worst performing currency from January, 2024. The cedi is said to have depreciated by 8.63% against the United States dollar. Reports say that, the cedi’s depreciation is as a result of the gross dept of the country. Bloomberg stated that the ongoing debt restructuring programe is also a factor for the depreciation.
From the month of January through to March, the cedi has encountered significant pressure. The cedi is . experiencing substantial depreciation against the US dollar. The depreciation has affected other major foreign currencies. Additionally, the cedi depreciated by more than 1.30% last week. The dollar is now being sold for ghc13.60 from the banks.
According to the Statistics by the Bank of Ghana, the dollar is bought at ghc12.7936 and sold for 12.8064. For other commercial baanks the dollar is sold between ghc13.10-ghc13.150. Just last year the 1 doollar was sold between ghc11.20-ghc11.40.
It is expected that the cedi, ranking as Africa’s third-worst-performing currency this year, may continue to face difficulties. In as much as the International Monetary Fund has offered a $3 billion bailout. The loan was granted following the country’s 2022 debt default.
https://www.trade.gov/market-intelligence/ghana-currency-depreciation
Even with interventions by the Bank of Ghana in the spot market, the cedi’s performance remains uncertain, prompting concerns about the outlook for inflation. Nevertheless, economist Professor Ebo Turkson has characterized the recent depreciation of the Ghana cedi as non-alarming, expressing his belief that the trend will soon be reversed.
He conveyed confidence in the cedi experiencing marginal appreciation in the forthcoming days. While addressing a stakeholder engagement workshop on Special Drawing Rights by the International Monetary Fund (IMF), Prof.
Turkson cautioned against speculative activity regarding the cedi’s depreciation or the dollar’s growth, noting that such activity could further weaken the currency and adversely affect importers who depend on the dollar for trade.
https://pinkfmonlinegh.com/bog-blames-pressure-on-economy-for-cedi-depreciation/
By; Maame Esi Kesewaa