Cedi Records 1.22% Depreciation to Dollar Last Week; $1 now Fetching ¢12.30

The Ghanaian cedi faced a substantial 1.22% depreciation against the US dollar in the retail market last week, with the exchange rate now standing at ¢12.30 for every $1. In addition to its dip against the dollar, the Cedi experienced losses of 0.63% and 0.19% against the pound and euro, respectively, on the retail market.

Interestingly, this occurred despite Ghana’s inflation rate dropping to 23.2% in December 2023. Despite efforts by the Central Bank, which included the auctioning of $20 million for Bulk Oil Distribution Companies in its inaugural sale for 2024, the persistent corporate demand for foreign exchange remained untamed.

Analysts are optimistic, believing that the anticipated $600 million inflow from the International Monetary Fund (IMF), expected after the approval of the first review of Ghana’s program by the board on Friday, January 19, 2024, will play a crucial role in reviving market sentiments. This injection is poised to elevate foreign exchange reserves and fortify interventions on the supply side.