The local currency, the cedi, has remained stable in the retail market, but it has faced pressure in the interbank market due to increased foreign exchange demand from traders and the manufacturing sector as the festive season approaches.
In the retail market, the cedi has maintained its rates against the euro and pound, closing at GH¢18.03/€ and GH¢21.35/£, respectively. However, it appreciated by 0.93% against the US dollar, with the mid-rate rising to GH¢16.20/US$, up from GH¢16.35/US$ the previous week.
Following a 200-basis point cut to 27% from 29% and assurances from Bank of Ghana Governor Dr. Ernest Addison regarding the bank’s capacity to meet forex demand, the dollar-cedi rate is expected to remain stable.
The recent changes to the methodology for calculating the Bank of Ghana’s Foreign Exchange Market Reference Rate (MRR) are also expected to reduce short-term volatility, despite rising demand ahead of the festive season.
As of September 2024, the cedi has depreciated by 24.3% against the US dollar in the interbank forex market, according to the Bank of Ghana’s Summary of Economic and Financial Data. This represents a smaller depreciation compared to the 22.9% recorded during the same period last year. The cedi lost 7.7% to the dollar in March and 18.6% in June 2024.
