Cedi depreciation against dollar continues; now GHS 12.45 to $1
Depreciation pressures on the cedi continues unabated as the local currency currently sells at GHS 12.45 pesewas to $1 at the forex bureaus.
This is from the previous exchange rate of GHS 12.10 pesewas to $1.
This translates into a 2.8% depreciation of the local currency against the greenback.
At the same time, the other major world foreign currencies – the pound and the euro – also appreciated in value to the cedi.
The local currency is going for GHS 13.30 to the pound and GHS 11.70 to the euro.
Before then, it traded at GHS 12.75 and GHS 11.15 to the pound and the euro respectively on Friday, October 4, 2022.
Despite the recorded depreciation rates against major world currencies, the cedi has remained unchanged to the Chinese yuan and the South African rand for some time now.
One yuan is going for GHS 1, whilst GHS 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 GHS 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.
