The Ghana cedi has breached the ¢12 to the dollar mark within just a week, selling at ¢12.10 at most forex bureaus or the retail market.
A visit by Joy Business to some forex bureaus indicates that most of the operators are selling the dollar for more than ¢12. They claim supply of dollars has reduced significantly.
Again, the cedi is losing grounds quickly against the pound and euro. Whilst a pound is going for about ¢12.70, one euro is selling at ¢11.10.
Within a week (October 10-October 14), the local currency has lost more than 6% value to the dollar. This means the year-to-date depreciation of the cedi is hovering around 46%.
By this rate of depreciation, the working capital of businesses, particularly manufacturers that depend on raw materials from overseas, have gone down by about 46% since January 1, 2022.
Joy Business understands that some banks are even struggling to get dollars to undertake transfer transactions for their clients.
For now, it’s unclear when the rapid depreciation of the cedi will cease. But, the inflows of the expected first tranche of the $1.13 billion Cocoa Syndicated Loan may help slow down the free fall of the cedi in the interim.
However, the finalisation of the ongoing negotiations between the government and the International Monetary Fund for an economic programme will bring a huge relief to managers of the economy.
This will not only give the country policy credibility, but will reassure investors of macroeconomic stability going forward.
1$ equals ¢11.62 as cedi depreciation pressures rise
The cedi sold for ¢11.62 to the US dollar yesterday October 13, 2022 in the forex market, as the depreciation pressures continued unabated.