Optimism expressed by businesses and traders about the stability of the cedi against the US dollar at the start of the year has faded following its continuous depreciation.
The cedi began the year on a relatively stable note, but just six weeks in, it has experienced a concerning rate of decline.
Bank of Ghana data shows that the cedi depreciated from GH₵14.5 per dollar at the beginning of January to GH₵15.55 per dollar currently, with even higher rates recorded at forex bureaus.
This 6.5% depreciation in the first six weeks of the year has raised concerns, with analysts predicting that if the trend continues, the cedi could depreciate by over 50% against the US dollar by the end of 2025.
The government has been urged to take immediate measures to curb the rapid depreciation before it worsens.
Meanwhile, despite a 5.65% drop in global crude oil prices, the cedi’s depreciation has led to a rise in fuel prices in Ghana.
A recent press release by the Institute for Energy Security (IES) revealed that in the first pricing window of February 2025, fuel prices in Ghana surged for the third time this year.
Gasoil prices rose by GH₵0.45 per litre, while gasoline increased by GH₵0.24 per litre.
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