Cedi depreciates 24.3% against dollar in September - Bank of Ghana

The Ghanaian cedi has experienced significant depreciation against its major trading currencies, according to the Bank of Ghana's September 2024 Summary of Economic and Financial Data.

The report reveals a 24.3% decline in the cedi's value against the US dollar, surpassing August's 21.3% depreciation rate.

Year-on-year, the cedi's depreciation has risen from 22.9% to 24.3%, with the local currency currently trading at GHS 15.70 to the dollar, compared to GHS 11.12 in September last year.

Similar trends were observed against other major currencies:

- 27.7% depreciation against the British Pound (up from 22.9% in 2023)
- 25.0% depreciation against the Euro (up from 22.3%)

Experts had anticipated stability in the cedi's value following Ghana's receipt of the second tranche of its USD 3 billion Extended Credit Facility with the International Monetary Fund (IMF) and other foreign inflows from donor partners.

However, concerns persist about increasing demand for the dollar, driven by high imports, potentially leading to further depreciation in December due to holiday-related spending.

The Bank of Ghana's report underscores the need for long-term measures to alleviate pressure on the cedi and stabilize Ghana's economy.

Economists warn that failure to address these underlying issues may exacerbate the cedi's decline, jeopardizing Ghana's economic recovery efforts.

Source: Lead News Online