The value of the local currency – the cedi – has fallen against all its major trading currencies according to the latest Bank of Ghana report.
The September 2024 Summary of Economic and Financial Data by the Bank of Ghana puts the depreciation of the cedi against the dollar at 24.3 %, compared to the 21.3% recorded in August 2024.
On a year-by-year basis, the rate of depreciation has jumped marginally from 22.9%. In real terms, the local currency lost grip to the American greenback currently trading at GHS 15.70 to a dollar relative to GHS 11.12 in September last year.
With regard to the Pound, the cedi depreciated by 27.7% to compared to the 22.9% same period in 2023.
To the Euro, the rate of depreciation was pegged at 25.0%, up from 22.3%.
This rate of depreciation comes at a time when the government needs to adopt long-term measures that will address the pressure that mounts on the local currency.
Players expected relative stability of the cedi after Ghana received the second tranche of its USD 3 billion Extended Credit Facility with the International Monetary Fund (IMF) earlier this year together with other foreign inflows from donor partners.
There is a possibility of an increase in the demand for the dollar, coupled with high imports, which may force the cedi to lose some more value come December because of the yuletide.