Ghana’s cedi falls to GH¢17.10 per dollar amid high demand

Ghanaian

In October 2024, the Ghanaian cedi experienced a 3.95% loss against the U.S. dollar, marking a significant decline and bringing its year-to-date depreciation to nearly 29%.

This comes despite assurances from the Bank of Ghana's Governor, Dr. Ernest Addison, who recently suggested the currency would soon recover against the dollar. In the same week, the cedi also depreciated by

Read full article1.50% against the British pound and by 0.69% against the euro.

The Bank of Ghana has been actively attempting to curb this decline through substantial interventions, including the auction of $20 million to Bulk Oil Distributors (BDCs) and an additional $81.47 million during a 7-day forward auction.

Nevertheless, these efforts have been largely insufficient in meeting the ongoing demand for the dollar. Starting the week of November 4, 2024, the cedi traded at GH¢17.10 per dollar on the retail market.

In response to the ongoing pressures, the central bank announced it would resume daily interventions in the spot market to help ease the foreign exchange demands of corporations. Analysts anticipate that these actions could bring some stability to the cedi in the near term.

However, further depreciation is expected due to sustained demand pressures and the potential strengthening of the U.S. dollar following key events, such as the U.S. presidential election and the Federal Reserve's upcoming interest rate decisions.

The Ghanaian cedi has already depreciated by approximately 15.57% in 2024 alone, highlighting the currency's ongoing struggle amid global economic conditions and domestic pressures.