Cedi features on Monday per BoG fee, buys at 15.9670 to a Dollar and sells at 15.9830
The Cedi has gained marginally in opposition to the foremost buying and selling currencies particularly the Dollar, per the Bank of Ghana (BoG) fee as of Monday, November 18.
Per the speed from the central financial institution on Monday, the Cedi is shopping for at 15.9670 to a Dollar and promoting at 15.9830.
Pound buys at 20. 1631 Cedis and sells at 20.1849 Cedis. The Euro additionally buys at 16.8504 Cedis and sells at 16.8671 Cedis.
On Friday, November 15, the Cedi was shopping for at 16.0720 and promoting at 16.0880.
The Ghana Cedi got here below intense strain in opposition to the foremost buying and selling currencies. Recently, the Institute of Economic Affairs disclosed the native forex misplaced about 74% of its worth in opposition to the greenback over the previous 3 years,
It depreciated by 30.0% in 2022 and 27.8% in 2023. It has to this point in 2024 misplaced nearly 29% to the American buck. According to the IEA, “this is a huge depreciation by all standards”.
The first is election uncertainties that makes the greenback holdings as a protected haven. The second is uncertainties about the way forward for the International Monetary Fund programme within the face of the unsure consequence of the elections and the attainable intentions of the brand new administration, which might enhance demand for {dollars}.
The third pertains to uncertainties about debt negotiations with non-Eurobond business collectors, which might delay additional disbursements below the IMF programme and related inflows and, thereby, scale back FX provide within the economic system.
“Indeed, the Minister of Finance [ Dr. Mohammed Amin Adam] has announced that the IMF Board will carry out the third review of Ghana’s programme on December 2, 2024. This seems quite belated since staff completed their own review in early October [2024]”, the IEA added.
The fourth is a subdued cocoa crop coupled with attainable availability of restricted syndicated mortgage within the face of COCOBOD’s expressed intention to shift to home financing of the crop.
The Finance Minister Dr. Mohammed Amin Adam, asserted earlier that the Cedi had witnessed a cumulative depreciation fee of 14.2 % year-to-date in comparison with 27 % recorded in the identical interval of 2023.
This, in accordance with him, advised that the cedi had been largely stabilised, emphasising that the native forex was nonetheless very sturdy in opposition to main buying and selling currencies just like the US greenback.
Dr Amin Adam made the remarks at his month-to-month press briefing on the economic system. He indicated that the cedi depreciation of twenty-two.7 recorded as of the tip of 2023 was about half of the 54.2 % recorded on the finish of 2022.
“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilised with the depreciation of the cedi against the US Dollar halving from 54.2% at the end of Nov 2022 to 27.8% at the end of Dec 2023. The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. So on that comparative basis we are safe to conclude that the cedi is still strong, very strong,” he emphasised.
“We expect the cedi’s stability to improve into the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium-term. “The recent pressures we are observing on the cedi is largely on the back of the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payment to contractors and to IPPs, high Cedi liquidity and speculation,” Dr. Amin Adam added.
