Cedi records 6.2% average depreciation loss in value to dollar, pound and euro in Q1 2024
The Cedi, per the latest data released by the Bank of Ghana (BoG) in its March 2024 Summary of Economic and Financial Data, recorded an average depreciation loss of 6.2% against the three major trading currencies (dollar, pound and euro).
The Central Bank pegged the cedi at GHS 12.74 to $1 in March 2023 representing a year-to-date depreciation rate of 6.8%.
Depreciation rates for the cedi against the dollar for January, February and March were 1.3%, 4.7% and 6.8% respectively.
On a year-on-year basis, there is a significant reduction in the depreciation rate of the cedi against the greenbuck.
The depreciation rate of the cedi to the dollar in March 2023 stood at 22.1% as against that of the 6.8% recorded in March 2024.
Against the pound and the euro, the local currency also recorded a year-to-date depreciation rate of 6.7% and 5.2% of its value.
Depreciation rates for the cedi against the pound and euro for January, February and March were 1.1%, 4.2%, 6.7% and 0.5%, 2.9% and 5.2% respectively.
Similar to that of the dollar, on a year-on-year basis, there is a significant reduction in the depreciation rate of the cedi against the pound and the euro.
The depreciation rate of the cedi to the pound in March 2023 stood at 24.3% as against that of the 6.7% recorded in March 2024.
Also, the depreciation rate of the cedi to the euro in March 2023 stood at 23.6% as against that of the 5.2% recorded in March 2024.
The Cedi, on the back of the year-to-date depreciation rate of 6.8% against the dollar has been ranked the third weakest currency in Africa by Bloomberg.
