Cedi depreciates further against major currencies amid economic pressures
The cedi has continued to weaken against all major trading currencies, according to the latest Bank of Ghana report.
The September 2024 Summary of Economic and Financial Data reveals a 24.3% depreciation of the cedi against the US dollar, up from 21.3% recorded in August 2024.
On a year-over-year basis, the cedi’s depreciation has risen slightly from 22.9%. The local currency is now trading at GHS 15.70 to the dollar, a significant drop from GHS 11.12 in September last year.
Against the British Pound, the cedi has depreciated by 27.7%, compared to 22.9% in the same period of 2023. In relation to the Euro, the depreciation rate has increased to 25.0%, up from 22.3% last year.
This continued decline comes at a time when the government is under pressure to implement long-term measures to stabilize the currency.
Many had expected some level of stability following the second tranche of Ghana’s USD 3 billion Extended Credit Facility from the International Monetary Fund (IMF) and other foreign inflows earlier this year.
With the approaching holiday season, there is a possibility of increased demand for the dollar, coupled with high import levels, which could further devalue the cedi by December.
