Cedi Crosses ¢13 Mark, Losing 5.4% in Value Against Dollar Since January 1, 2024

80

The Ghana cedi experienced further depreciation on February 28, 2024, crossing the ¢13 mark against the US dollar. According to reports from forex bureaus, the exchange rate ranged from GH¢13.05 to GH¢13.15 per US dollar.

Analysts attribute the recent depreciation to seasonal corporate demand and significant coupon payments of about GH¢5 billion from new Government of Ghana bonds to investors. However, they suggest that the depreciation trend reflects broader issues beyond these factors.

Year-to-date, the cedi has depreciated by approximately 5.36%, with a notable loss of about 26 pesewas against the US dollar in the last two days of the week.

Similar trends are observed for the pound and the euro, with exchange rates of GH¢16.20 and GH¢14 respectively.

At the beginning of the week, the cedi was trading at GH¢12.85 on the retail market, while the Bank of Ghana quoted one US dollar at GH¢12.40.

Last week, the cedi weakened by 1.37% against the US dollar due to increased corporate demand and pressure from cedi-funded foreign exchange transactions.

Research institutions previously projected a mid-US dollar Ghana cedi rate at GH¢13.10/US$1, with anticipated improvements in fundamentals, expected external inflows, and appropriate monetary policy measures mitigating election-related and external debt restructuring uncertainties.