Cedi remains relatively stable since February 2023; Y-T-D depreciation to dollar stands at 22.5% in September 2023

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The Ghana cedi has remained relatively stable to the US dollar since depreciating by about 20.6% on the interbank forex market in January 2023.

According to data from the Bank of Ghana, the local currency has lost about 22.5% to the American greenback as of September 2023.

This is compared with 37.5% during the same period in 2022.

The cedi came under severe pressure in January 2023 but has since slowdown in deprecation.

In February 2023, the cedi lost about 21% in value to the American greenback but in March 2023 the deprecation stood at 22.1%. It has since remained in the 21-22% bracket till September 2023.

Presently, the local unit is going for ¢11.58 against the dollar on the retail market.

Fitch Solutions had forecasted that the cedi would end 2023 at ¢11.40 against the US dollar.

“While short-term exchange rate volatility will persist, we believe that the cedi will stabilise once a formal creditors’ committee is formed and the IMF executive board approves Ghana’s programme”, it stated.

The Economist Intelligence Unit also revised its projected depreciation of the cedi to dollar in 2023 to about 23.0% from the earlier 30.0%.

According to its 2023 Updated African Outlook Report, this will however place the local currency as the third weakest in African this year.  

It means that the cedi will depreciate lower than the 44.0% recorded against the American greenback in 2023.

Meanwhile, the cedi has lost 24.9% and 22.8% in value to the pound and euro respectively so far this year, according to data from the Bank of Ghana