Ghana cedi experiences 25.8% depreciation against the US dollar, Bank of Ghana takes stability measures

November 27, 2023
Ghana cedi
Ghana cedi

The Ghana has witnessed a significant depreciation of about 25.8% against the US as of November 2023, according to the 's November 2023 Summary of Economic and Financial Data.

The cedi remained relatively stable from March 2023 to September 2023 but started losing ground in October and November 2023.

In March 2023, the rate of depreciation was 22.1%, a figure that increased slightly to 22.9% by September.

However, in October and November 2023, the depreciation rate accelerated to 25.4% and 25.8% respectively. Currently, the cedi is trading at around 12.15 in the forex market.

Against the pound and the euro, the cedi has also experienced losses of 28.6% and 27.7% respectively.

The recent pressure on the local currency can be attributed to increased demand for the dollar by corporates and importers, particularly ahead of the festive season.

Last week, despite the efforts of the Bank of Ghana, which auctioned $20 million to Bulk Oil Distribution Companies (BDCs) and provided $2 million on the spot market, the cedi continued to weaken.

In the week's final trading session, the cedi lost 0.41% week-on-week against the dollar, 0.41% against the pound, and 0.78% against the euro on the retail market. Although the depreciation was lower than the preceding week, concerns lingered.

Nevertheless, there is optimism for stability in the upcoming week. This follows the recent approval of the $800 million cocoa syndication loan by and the $102.6 million budget support program for Ghana.

These developments are expected to provide a boost to the country's forex reserves and contribute to the stabilization of the cedi.

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