The Ghana cedi depreciated by 11 per cent between January 2018 and
January 2019.
Currently, the cedi is trading at GHC4.91 to a dollar on the interbank foreign
exchange market.
Although some analysts predicted that the cedi could have reached 5 cedis to
the dollar within the period, the cedi’s depreciation has been remarkable.
Again, the demand for dollars by importers increased during that period, but
the relative complementary supply of the currency stabilized the situation to
some extent.
Relatively, the currency has been stable within the last three months of last
year and this month.
At the end of 2018, the cedi traded at GHC4.82 to a dollar.
According to reports, the interbank foreign exchange market showed that the
local currency has started its losing streak against the dollar. This was
between January 3 to January 17, 2019. The currency has depreciated by
1.65%.
This hence compares to a year on year depreciation of 11%.
The cedi again has recorded the highest depreciation against the British
Pound. It has depreciated by 4.45%.
Reports say that the depreciation due to the impact of the Brexit on the
international currency market where the British Pound is making gains against
the dollar.
The cedi has depreciated from GHC6.7 at the beginning of the year to
GHC6.34 as at Thursday, January 17, 2019.
Meanwhile, the government has given an assurance that it will do whatever is
in its power to help depreciate the cedi drastically to the dollar to enhance
economic growth.
It said the Ghana COCOBOD’s receipt of the second tranche of the
syndicated loan of about $600 million should help normalize the situation in
the interim.
