Sunday, 23 June

May: Cedi falls 14.6% against dollar – BoG

The Ghana cedi has been wobbly for some months

The Ghanaian cedi has depreciated by about 14.6% against the US dollar as of May 2024, the Bank of Ghana reports.

This is slightly better than the roughly 20% loss in value seen on the retail market.

The Bank of Ghana’s May 2024 Summary of Financial and Economic Data shows the cedi lost 7.7% against the dollar in March 2024 and depreciated by 10.5% in April 2024.

On the retail market, the dollar is averaging GH¢15, while the Bank of Ghana quotes it at GH¢13.01.

Against the British pound, the cedi has fallen by 14.5%, trading at GH¢17.70. It has also lost 12.9% against the euro, with a current rate of GH¢15.07.

Finance Minister Mohammed Amin Adam assured on Friday, May 24, 2024, that the government is collaborating with the Bank of Ghana to address the cedi's depreciation.

Measures include accelerating fiscal consolidation by rationalising spending and boosting revenue, intensifying the gold-for-oil program, and implementing strategic foreign exchange interventions.

Other strategies involve enhancing the gold-for-reserve programme, disbursing the third tranche under the International Monetary Fund-supported programme after its June 2024 review, and securing funds from ongoing projects, such as a $150 million World Bank loan and an anticipated $300 million World Bank disbursement in the third quarter of 2024.

Despite recent challenges, the pressure on the cedi has eased due to improved foreign exchange liquidity, particularly in US dollars.

Last week, the Bank of Ghana intervened significantly, injecting about $59 million into the spot market and auctioning $20 million to Bulk Oil Distribution Companies, stabilising the currency for now.