Cedi Continues To Lose Value To The Dollar Ahead Of Christmas Season, Now Trading At GH¢12.10

Cedi Continues To Lose Value To The Dollar Ahead Of Christmas Season, Now Trading At GH¢12.10

  • The Ghana Cedi is now going for GH¢12.10 against the US dollar on the forex or retail market
  • Reports indicate that demand for the dollar has been high at forex bureaus ahead of the Christmas season
  • The pressure on the Ghana Cedi is expected to ease if the $600 million from the International Monetary Fund arrives

The Ghana Cedi has further depreciated to sell at GH¢12.10 against the US dollar on the forex market.

This is despite forecasts that the Ghana Cedi will end the year at an average of GH¢11.60 to the dollar.

Cedi Continues To Lose Value To The Dollar
The Ghana Cedi continues to lose ground to the dollar. Source: Getty Images
Source: Getty Images

Checks by Joy News at some forex bureaus indicate that the demand for the dollar is high two months before the Christmas season.

Significant foreign exchange demand has been from local corporates and importers.

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The expected $600 million from the International Monetary Fund in November 2023 could ease the pressure on the Ghana Cedi.

Earlier forecasts for the end of 2023

Earlier, experts predicted more depreciation for the cedi. The Director of Operations at Dalex Finance, Joe Jackson, said the Ghana cedi was likely to fall steeper against the dollar by the close of 2023.

He projected that by the end of 2023, the dollar could sell for GH¢15.

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

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 in dollars

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

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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.

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.

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Source: YEN.com.gh

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.