Cedi-Dollar Depreciation: Ghana’s Currency Now Trading At ¢12 To A Dollar

• Ghana’s currency has shattered the 8 before the governing New Patriotic Party (NPP)
• The cedi is now trading at forex bureaus across the country for ¢12 to a dollar
• The local currency continued its slump against all the major trading currencies, including the pound and the euro

The cedi has broken the ¢12 mark to a dollar and is now selling at ¢12.10.

A report by Accra-based Joy Business indicates that some forex bureaus are now selling above the ¢12 mark after a supply of dollars was reduced significantly.

The slump of the local currency is not against the dollar alone but major trading global currencies, including the pound and euro.

A pound is now selling for ¢12.70 while one euro trades for ¢11.10.

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In less than a week, the cedi has lost more than 6% value to the dollar. Since the beginning of 2022, the year-to-date depreciation of the cedi is hovering around 46%.

This effectively means the working capital of businesses, particularly manufacturers that depend on imported raw materials from overseas, has depreciated greatly since January 1, 2022.

The report added that some commercial banks in the country struggle to get dollars to undertake transfer transactions for their clients.

For now, it’s unclear when the rapid depreciation of the cedi will halt, but analysts believe the inflows from the $1.13 billion Cocoa Syndicated Loan may help slow down the free fall in the interim.

Government officials are also optimistic that the ongoing negotiations with the International Monetary Fund (IMF) for a $3 billion economic programme will restore investor confidence and give the country policy credibility.

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Cedi Slumps To Three-Decade Record Low Against US Dollar; Ranked Second-Worst Performing Currency In The World

Earlier, YEN.com.gh reported that the cedi had been ranked the second-worst-performing currency in the world.

According to Bloomberg, in just nine months of 2022, the cedi has lost so much value that it is now the 147th worst currency worldwide.

This massive decline of the cedi against the American currency makes it the worst in over three decades.

Source: YEN.com.gh