BoG Touts Average 7.56% Appreciation Gains Against Dollar, Pound and Euro
The local currency according to the Central Bank has made appreciable gains against three major currencies – dollar, pound, and euro – since end-October to November.
The Cedi, the Central Bank notes, has recorded appreciation rates of 6%, 7.6%, and 9.1% against the dollar, pound and euro.
Adding that, the appreciation of the cedi is on the back of increased confidence in the country’s foreign exchange market.
“The external sector position has improved remarkably in the year, supported by a higher current account surplus and reduction in net financial outflows, leading to a strong external reserves build-up.
“The strong external sector performance is boosting confidence in the foreign exchange market, with the Ghana cedi recording appreciable gains. Since end-October to November 2024, the Ghana cedi has recorded respective appreciations of 6.0 percent, 7.6 percent, and 9.1 percent against the US dollar, the British pound, and the euro,” the Central Bank quipped.
Despite the gains made against the three major trading currencies, the average depreciation rate of the cedi against the dollar, euro, and pound is pegged at 21.4% at end-November.
Per recent data contained in the Central Bank’s November 2024 Summary of Economic and Financial Data report, depreciation rates against the dollar, euro, and pound at end-November 2024 stood at 22.7%, 19.1%, and 22.4% respectively.
The end-November depreciation rates of the cedi against the three major trading currencies, marked appreciable month-on-month reductions in the depreciation rates of 27.1% for the dollar, 25.8% for the euro, and 27.8% for the pound.
On a year-on-year basis, the cedi has performed better this year than it did last year, having recorded depreciation rates of 26.2%, 27.8%, and 29.8% for the dollar, euro, and pound respectively.
The cedi commenced the year with depreciation rates of 1.3%, 0.5%, and 1.1% against the dollar, euro and pound.
