Cedi records year-to-date loss of nearly 29%; one dollar now going for GH¢17.10

The Ghanaian cedi continued to face significant pressure in October 2024, declining by 3.95% against the US dollar, which has contributed to a nearly 29% depreciation since the beginning of the year.

This decline came despite assurances from the Governor of the Bank of Ghana, Dr. Ernest Addison, who recently expressed optimism that the cedi would soon recover some ground against the dollar. In the past week, the cedi also lost 1.50% of its value against the British pound and 0.69% against the euro, indicating a broader challenge across major currencies.

Efforts by the Bank of Ghana to stabilize the cedi included auctioning $20 million to Bulk Oil Distributors (BDCs) and an additional $81.47 million through a 7-day forward auction. However, these measures have not fully eased the intense demand for foreign exchange. As of November 4, 2024, the retail market saw the cedi trading at GH¢17.10 to one US dollar.

Last week, the Bank of Ghana announced its intention to resume daily interventions in the spot market, aiming to meet the high corporate demand for foreign currency. Analysts believe this could lend some stability to the cedi in the coming weeks.

However, the outlook for the cedi this week remains cautious due to ongoing demand pressures. Additionally, potential strengthening of the US dollar, driven by the upcoming U.S. presidential election and the Federal Reserve’s anticipated interest rate decision, could place further downward pressure on the local currency. So far in 2024, the cedi has depreciated by approximately 15.57%