According to the latest report from the Bank of Ghana, the value of the local currency, the cedi, has depreciated against all major trading currencies.
The September 2024 Summary of Economic and Financial Data indicates that the cedi has fallen by 24.3% against the US dollar, a notable increase from the 21.3% depreciation recorded in August 2024.
Year-on-year, the depreciation rate has slightly risen from 22.9%. In real terms, the cedi has weakened significantly against the dollar, currently trading at GHS 15.70 compared to GHS 11.12 in September of last year.
Against the British pound, the cedi saw a depreciation of 27.7%, up from 22.9% in the same period in 2023.
The depreciation rate against the euro was recorded at 25.0%, an increase from 22.3%.
This decline in value occurs at a critical time when the government must implement long-term strategies to alleviate the pressures on the local currency.
After receiving the second tranche of its USD 3 billion Extended Credit Facility from the International Monetary Fund (IMF) earlier this year, along with foreign inflows from donor partners, market players had anticipated a period of relative stability for the cedi.
However, there are concerns that increased demand for the dollar, coupled with high import levels, could lead to further depreciation of the cedi as the holiday season approaches in December.
Source: Adomonline
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