The depreciation pressures on the Ghana cedi continued unabated as the local currency sold at ¢12.45 to the US dollar at the forex bureaus or the retail market.
This translates into 2.8% depreciation of the local currency to the world’s most powerful currency, just in a single day.
At the same time, the other major foreign currencies – the pound and the euro also appreciated in value to the cedi.
The local currency is going for ¢13.30 to the pound and ¢11.70 to the euro. Before then, It traded at ¢12.75 and ¢11.15 to the pound and the euro respectively on Friday, October 4, 2022.
Interestingly, the cedi has remained unchanged to the Chinese yuan and the South African rand for some time now.
One yuan is going for a cedi, whilst ¢1.4 cedis is equivalent to a rand.
For now, it appears the depreciation of the Ghana cedi is out of hand, and until the announcement of an economic programme by the International Monetary Fund for Ghana, the situation may worsen.
Some analysts have already projected an end year cedi-to-dollar rate of ¢15.
They argue that a country that receives multiple downgrades within a year is likely to suffer from a free fall of its currency, citing Sri Lanka and Argentina as an example.
Cedi hits ¢12.10 to dollar
The Ghana cedi breached the ¢12 mark on Friday October 14, 2022, selling at ¢12.10 at the forex bureaus.
A visit by Joy Business to some forex bureaus indicates that most of the operators are selling the dollar for more than ¢12.
Also, the cedi is losing grounds against the pound and euro. Whilst a pound is going for about ¢2.70, one euro is selling at ¢11.10