Audio By Carbonatix
The Ghana cedi crossed the ¢13 mark as the depreciation of the local currency continued on February 28, 2024.
Most forex bureaus, according to checks by Joy Business sold one US dollar for between GH¢13.05 and GH¢13.15.
Some analysts have attributed the recent depreciation of the cedi to incessant corporate demand, which they described as seasonal, and the over GH¢5 billion coupon payments of about 15 new Government of Ghana bonds to investors last week. However, they believe that the worsening situation goes beyond the two above issues.
The year-to-date depreciation of the local unit is about 5.36% after losing about 26 pesewas one American greenback in the last two days of this week.
The same situation can also be said about the pound and the euro as they are now are going for GH¢16.20 and GH¢14 respectively.
The cedi began this week going for GH¢12.85 on the retail market. However, the Bank of Ghana is quoting one dollar to GH¢12.40.
It weakened 1.37% week-on-week to the American greenback last week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.
Some research institutions had earlier projected a mid-US dollar Ghana cedi rate at GH¢13.10/US$1 (-8.4% annual loss) with improving fundamentals, expected external inflows, and appropriate monetary policy stance partly offsetting election-related and external debt restructuring uncertainties.
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