The Ghana cedi has depreciated by about 14.6% to the US dollar as of May 2024, the Bank of Ghana has revealed.
This is lower than the about 20% loss in value to the American greenback on the retail market.
According to the Central Bank’s May 2024 Summary of Financial and Economic Data, the cedi lost 7.7% in value to the dollar in March 2024 and depreciated by 10.5% against the dollar in April 2024.
Whilst it is going for GH¢15 on average against the dollar on the retail market, the Bank of Ghana is quoting a dollar to GH¢13.01.
Against the pound, the cedi has so far depreciated by 14.5%. It is trading at GH¢17.70.
It has also lost 12.9% in value to the euro. It is selling at GH¢15.07.
The Finance Minister, Dr. Mohammed Amin Adam, on Friday, May 24, 2024, assured that his outfit is working with the Bank of Ghana to implement measures to address the depreciation of the cedi.
These measures, he said, included fast-tracking the fiscal consolidation process through rationalizing spending and enhancing revenue mobilization; intensification of the gold-for-oil programme, and the appropriate foreign exchange interventions by the Bank of Ghana.
Others were the intensification of the gold for reserve programme; the disbursements of the 3rd tranche under the 2nd Review of the International Monetary Fund-supported PC-PEG after the IMF Executive Board approval in June 2024; the disbursement from other ongoing projects including the $150 million World Bank loan; the expected disbursement of $300 million under the World Bank DPO2, possibly in the 3rd quarter of 2024; among others.
Meanwhile, the depreciation pressures on the cedi have slowed down as a result of improved foreign exchange (FX) liquidity, particularly the US dollar.
This follows significant intervention by the Bank of Ghana on the market last week, providing about $59 million on the spot market and auctioning $20 million to the Bulk Oil Distribution Companies.