- The Ghanaian cedi continued to depreciate and trades at GH¢16.35 to a dollar in the retail market
- The cedi has depreciated by 1.21% against the dollar in the retail market, compared to 1.84% last week
- The cedi has lost 26.10% against the dollar in 2024, making it one of the worst performing currencies in Africa
The Ghanaian cedi continued to depreciate despite earlier positive outlook.
This devaluation of the Ghanaian cedi comes despite reduced demand pressure for forex.
Joy News reported that the cedi depreciated 1.21% against the dollar in the retail market last week, up from 1.84% in the previous week. The local currency is currently trading at GH¢16.35 to a dollar in the retail market.
So far in 2024, it has lost 26.10% against the dollar, making it one of the worst performing currencies in Africa.
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CEDI perspective
Parliament has approved a $250 million World Bank loan under the Ghana Energy Sector Recovery Program to address the current energy sector challenges.
The facility also intends to help reduce energy sector debt and maintain a stable energy supply across the country, promoting economic growth.
Analysts expect improved market sentiment once the Bank of Ghana releases the fund in the coming weeks.
Bloomberg has previously reported that the cedi may end the year at GH¢15.97 to the dollar.
Bawumia suggests pegging the value of the cedi to gold
Vice President Mahamudu Bawumia proposed a plan to peg the value of the cedi to gold.
The vice president said this was part of efforts to protect the currency against forex challenges.
As of July 2024, the cedi had depreciated by over 19.6% against the dollar, affecting fuel prices and inflation.
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Some banks are starting to charge fees on forex accounts
YEN.com.gh reported that some commercial banks have resumed charging customers for holding foreign currency accounts.
Some banks have communicated the decision to resume charges to customers via text and email.
Some dollar accounts were charged $5 for holdings over $100, on top of the existing 3% withdrawal fee.
Corrected by Edwina NK Quarcoo, journalist and copy editor at YEN.com.gh.
Source: YEN.com.gh