The Ghanaian Cedi has surpassed the GH¢16 threshold against the US Dollar in the currency retail market.
A survey conducted across various forex bureaux and banks in Accra revealed that the dollar is being sold at rates ranging from GH¢15.95 to GH¢16.20.
This development follows the recent lifting of restrictions on dollar auctions by the Bank of Ghana, a move by the International Monetary Fund (IMF) after a notable increase in Ghana’s reserves under a US$3 billion economic recovery programme.
According to the Bank of Ghana‘s July 2024 Summary of Financial and Economic Data, the Cedi has depreciated by approximately 19.6% against the US Dollar on the interbank forex market as of July 2024. This rate is slightly better than the 21% decline observed in the retail market.
During visits to several forex bureaux in Accra, operators cited the challenging economic environment and a recent directive by the Bank of Ghana, which requires customers to present Ghana cards as proof of identification before transactions.
Bernice Arthur, a forex bureau operator, mentioned that customers are increasingly bargaining for lower rates, affecting business profitability.
Edward Lawson, another operator, attributed the sluggish business to the hoarding of foreign currencies by some customers, who are waiting for higher rates before making exchanges.
“Business has become slow because some are waiting for the dollar to rise before they come and change, which is very bad.”
Economic and Fixed Income Analyst Wilson Zilevu pointed to market sentiment as a major driver behind the elevated exchange rates, highlighting speculative behaviour among forex dealers. He also noted a recent seven-day option organized by the central bank, allowing foreign exchange dealers to lock in their prices.
“Speculative behaviour of foreign exchange dealers is all churning out today. Recently, the central bank also organized a seven-day option for foreign exchange dealers where they can lock in their prices.”
Zilevu urged the Bank of Ghana to reassure market players about the availability of forex to stabilize the situation.
