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Cedi Depreciation Projected To Slow Down This Week, Dollar Selling At GH¢16.28
Business and Economy

Cedi Depreciation Projected To Slow Down This Week, Dollar Selling At GH¢16.28

by  Delali Adogla-Bessa 2 min read
  • The cedi depreciation has been projected to slow down after some key actions by the Bank of Ghana
  • The Central Bank injected about $28 million into the market on August 28, 2024, among other actions
  • The cedi, however, depreciated by 1.84 per cent against the US dollar, 1.43 per cent against the pound, and 0.42 per cent to the euro

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The cedi depreciation has been projected to slow down after some intervention by the Bank of Ghana in the forex market.

Demand pressure on the cedi is also expected to subside.

Cedi Depreciation IS Projected To Slow Down
The Bank of Ghana has injected about $28 million to fight the cedi depreciation.
Source: Getty Images

The Bank of Ghana injected about $28 million into the market on August 28, 2024. This was after a seven-day forward auction.

An additional $20 million was forwarded to the Bulk Oil Distribution Companies to help meet dollar demand.

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These interventions held the cedi steady for the rest of the week as demand pressures appeared to have waned.

However, on the retail market last week, the cedi depreciated by 1.84 per cent against the US dollar, 1.43 per cent against the pound, and 0.42 per cent against the euro.

This pushed the dollar to close the week at GH¢16.28 on the retail market.

Since the beginning of the year, the local currency has lost about 24% in value to the American greenback.

Cedi predicted to have stable end to year

The Ghana cedi is only expected to depreciate modestly between now and the December elections.

The cedi is considered the fifth-worst-performing currency of the year by Bloomberg.

Bloomberg reported that Ghana may end the year at GH¢15.97 per dollar, according to Oyinkansola Samuel, an analyst at FirstRand Ltd.’s RMB Nigeria unit.

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The cedi has been hurt by this year’s poor cocoa crop, which provides Ghana with a vital source of foreign exchange earnings.

During prolonged debt-restructuring talks amid the default, there have also been investor concerns that led to Ghana seeking IMF support.

Finance Minister blames debt on cedi depreciation

YEN.com.gh reported that the Finance Minister, Dr Mohammed Amin Adam, has blamed the country's ballooning debt on the cedi's rapid depreciation.

The country's debt has risen to a staggering GH¢761.1 billion, equivalent to $51.1 billion, from GH¢587.7 billion, equivalent to $53.5 billion.

The minister also blamed the situation on disbursement from multilateral institutions and domestic budget financing.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

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Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Current Affairs Editor) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.

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