Cedi Begins To Depreciate: Falls By 11.21% In Half-Year And Projected To Reach GH¢15 To $1 By End Of 2023

• The cedi has lost 11.21% of its value to the US dollar by the first-half of 2023, according to Bloomberg
• About the same period last year, the cedi lost as much as 20% of its value to the US dollar
• The cedi is currently going for GH¢11.68 to $1 on the retail market but it is projected to reach GH¢15 to $1 by the end of 2023

The Ghana cedi is again losing ground to the dollar and has already lost 11.21% of its value to the American greenback in the first half of 2023.

Although the current depreciation is better than last year, the local currency is projected to end this year a bit worse off, as some experts believe it could end the year selling at GH¢15 to $1.

Despite performing better against the dollar in the last three months, Bloomberg still classifies the Ghana cedi among African currencies with "Worst Spot Returns".

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Currently, the Ghana cedi is going for GH¢11.68 to $1 on the retail market but the Bank of Ghana is quoting GH¢10.99 to $1.

Between January 2022 to July 2022, the cedi lost more than 20% of its value to the cedi, prompting the Bank of Ghana to clamp down on black market operations.

Cedi is expected to go for GH¢15 to the dollar by the end of 2023

Experts predict more depreciation for the cedi in the coming days.

Director of operations at Dalex Finance Joe Jackson has said the Ghana cedi is likely to fall steeper against the dollar by the close of 2023. He projects that by the end of 2023, a dollar could sell for GH¢15.

According to him, the cedi resilience over the last three months is largely due to the government’s delayed repayment of external debts.

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Joe Jackson made the project during a Canada Ghana Chamber of Commerce Webinar held on Thursday, June 29, 2023.

“Based on my forecast, the cedi is likely to reach GH¢15 to $1 by the end of the year, as mounting pressure on the dollar erodes the relative stability of our currency,” he said.

Fitch Solutions, however, projects a lesser depreciation, forecasting that the local currency will end 2023 at GH¢12.40 to one US dollar.

Bank of Ghana urges businesses to stop pricing and receiving payments in dollars

Meanwhile, YEN.com.gh reported last year that the Bank of Ghana has warned the business community in Ghana against pricing and doing other related activities in dollars and other foreign currencies.

The central bank said transacting in foreign currency in Ghana without authorisation is against the law.

The BoG said in a statement that it is collaborating with law enforcement agencies to continue the clampdown on businesses flouting the law.

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Fidelity Bank and First National Bank suspended from forex trading

In a separate story, YEN.com.gh reported that two of Ghana's top banks have been sanctioned by the central bank for breaching rules on interbank forex trading rules.

Punitive sanctions have been taken against Fidelity Bank and First National Bank Ghana by the Bank of Ghana.

Their forex trading licences were revoked, and they would not be permitted to do any forex transactions for 30 days.

Source: YEN.com.gh