Cedi drops in value by 2.6 percent in 11 months, expected to hit 6.32 by end of year

Cedi drops in value by 2.6 percent in 11 months, expected to hit 6.32 by end of year

  • The Bank of Ghana says cedi has been down for about 11 months
  • The local currency depreciates by 2.6 percent of the major currencies, including the dollar
  • International research firms predict that cedi will reach ¢ 6.32 to dollar by the end of the year

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Ghana cedi has declined by 2.6% in about 11 months this year, which is projected to be much better, according to data from the Bank of Ghana.

This compares with a 1.7% decline in the first 7 months of 2021. The Central Bank estimated the cedi dollar rate at ¢ 5.91, although it trades at ¢ 6.26 in the interbank forex market.

Cedi drops in value by 2.6 percent in 11 months, expected to hit 6.32 by end of year
Cedi drops in value by 2.6 percent in 11 months, expected to hit 6.32 by end of year. Photo: Getty Images
Source: UGC

However, the rate of cedi inflation indicates that local funding will remain within the research facilities and analysts' forecast for this year, with six weeks to go before the end of the year.

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Indeed, the 3.9% cedi depreciation rate to the dollar over the past year has led to the lowest inflation rate in Ghana's economic history.

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According to the November 2021 Summary on Economic and Financial Data, cedi decreased by 1.8% and 2.4% in September 2021 and October 2021 respectively.

The Cedi forecast will end the year between ¢ 6.14 and ¢ 6.32 to the dollar. Fitch Solutions, the research agency of the rating agency, Fitch, and Databank Research, at the beginning of the forecast is a slightly different end of the year rate for cedi and dollar.

While Fitch Solutions rated ¢ 6.32 dollars at the end of the year, Databank Research predicted between ¢ 6.14 and ¢ 6.25.

Source: Yen

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