The Ghana cedi has hit the GH¢16 mark to a dollar on the retail market after weeks of relative stability.
This is how much most forex bureaus are selling the dollar on the average.
The new development is a sign that the depreciation pressures are not over.
Financial Analyst, Professor Williams Peprah, in an interview with JoyBusiness said there was no cause to panic yet as this could be as a result of a weekend bump.
“I don’t think we must panic”, he said expressing optimism the market may correct itself soon.
He expects the local currency to hold steady at GH¢15.90 till November 2024 when the Christmas festivities approach.
The new milestone also comes at a time the International Monetary Fund has lifted restrictions on dollar auctions by the Bank of Ghana after strong reserve build up under a $3 billioneconomic recovery programme.
Analysts expect this lifting of restrictions to further strengthen the cedi.
Cedi Half-Year Performance
The Ghana cedi depreciated by about 19.6% to the US dollar on the interbank forex market as of July 2024, the Bank of Ghana announced in its July 2024 Summary of Financial and Economic Data.
This was lower than the about 21% loss in value to the American greenback on the retail market.
According to the data, the cedi lost 7.7% in value to the dollar in March 2024 and depreciated by 10.5% against the dollar in April 2024. It again 15.9% and 18.6% in value to the world’s most important currency in June 2024 and July 2024.
Whilst it is going for GH¢15.60 on average against the dollar on the retail market, the Bank of Ghana is quoting one dollar as GH¢14.78.
Against the pound, the cedi has so far depreciated by 20.8%. It is trading at GH¢19.10.
It has also lost 18.4% in value to the euro. It is selling at GH¢16.09.
Cedi stabilised against dollar
The cedi extended its rally against the US dollar two weeks ago, amidst rising corporate demand.
The market continued to cling to a potential rate cut by the US Federal Reserve soon, contributing to the weakening American greenback.
Myjoyonline.com