The high demand for the US dollar continues to weigh on the Ghana cedi as the local currency lost some ground against the American ground today.
According to data from the forex market, the local unit depreciated by 0.41% day-on-day on November 13, 2023.
This means the cedi is now going for ¢12.13 on average to one American greenback in the retail market.
However, the Bank of Ghana is quoting a dollar to ¢11.52 on the interbank market.
Some market analysts are attributing the recent depreciation of the local currency to the Christmas festivities where importers are bringing in more goods onto the market to sell.
However, the expected inflows from the Cocoa Syndication Loan and the $600 million International Monetary Fund would reverse the depreciation. Therefore, any delays will worsen the plight of the local currency.
Presently, the cedi has lost almost 12% in value to the dollar in the retail market since the beginning of the year, whilst it has depreciated by almost 23% in the interbank market.
Cedi’s outlook hinges on cocoa syndication loan, IMF inflows – Report
Analysts had earlier said the outlook of the Ghana cedi now hinges on the timing of the anticipated foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.
According to GCB Capital, this is crucial to the stability of the cedi for the rest of the year.
For the remainder of quarter 4, 2023, many analysts and market watchers believe the inflows of the cocoa syndication loan and the second tranche of the International Monetary Fund bailout package will influence the performance of the cedi.