Cedi’s Downward Slide: BoG Reports 0.7% Depreciation Against the Dollar in January 2024
The Ghana cedi has lost about 0.7% in value to the dollar so far this year, the Bank of Ghana has revealed.
According to its January 2024 Summary of Economic and Financial Data, the cedi began 2024 better than the same period in 2023. It lost 20.6% in value to the American greenback in January 2023.
Currently, the local currency is selling at GH¢11.97 to a dollar on the interbank market, but going for GH¢12.33 in the retail market.
Importantly, the local currency has gained 0.7% in value against the euro but has lost 0.6% against the pound on the interbank market.
So far this year, the cedi has lost about 2.0% in value to the dollar. This is despite the existence of the International Monetary Fund (IMF) programme which the Board approved the first review programme on January 19, 2023.
It also dipped 1.12% and 1.11% week-on-week against the pound and the euro on the retail market.
However, it made some marginal gains against all the major foreign currencies in the past week.
Analysts expect improved investor sentiment, following the inflow of the $600 million bailout package and other budgetary support from the World Bank to help tame the depreciation of the cedi.
Despite the prevalence of corporate demand, they believe forex market sentiment would improve as the cash inflow from the IMF and the World Bank should help increase supply-side intervention and cushion the cedi in the near term.
Source: Joy News