Cedi records 25.8% depreciation to dollar since January 2023 – BoG

The Bank of Ghana has disclosed that the cedi lost about 25.8% in value against the US dollar from January to November 2023.

The cedi remained relatively stable between March 2023 and September 2023 until losing ground in October 2023 and November 2023, according to BoG’s November 2023 Summary of Economic and Financial Data.

The cedi’s depreciation rate to the dollar was 22.1% in March 2023.

This is compared with 22.9% recorded in September 2023.

However, in October and November 2023, the rate of depreciation was 25.4% and 25.8% respectively. The cedi is currently going for about ¢12.15 to the dollar in the forex market.

At the interbank market rate as of the close of day Thursday, November 23, it traded for about ¢11.66 to a dollar.

Bank of Ghana Exchange Rates pic.twitter.com/J5RkreoazL

— Bank of Ghana (@thebankofghana) November 24, 2023

Against the pound and the euro, the cedi has lost 28.6% and 27.7%, respectively.

The local currency has come under severe pressure in the last two months due to increased demand for dollars by corporations and importers ahead of the festive season.

Last week, the depreciatory pressures on the cedi continued to heighten amidst limited forex support.

However, these central bank supports proved insufficient to hold up the cedi as it weakened at the week’s final trading session.

The cedi lost 0.41% week-on-week against the dollar, 0.41% to the pound and 0.78% against the euro on the retail market.