Cedi depreciation stands at 54.2% for 11 months of 2022 – BoG

The rate of depreciation between the Ghana Cedi and the US Dollar stands at 54.2 percent covering about 11 months of 2022, the Bank of Ghana has said.

This comes after the November 2022 Summary of Economic and Financial Data released by the BoG quoted the cedi to dollar rate at GH¢13.10 to $1.

This represents a lower rate than that on the retail forex market which is selling $1 at around GH¢14.90.

For other major trading currencies such as the Pounds Sterling, the Cedi lost its value by about 48.9 percent since the start of 2022. At the moment, the cedi is going at GH¢17.48 to one pound.

For the Euro, the Ghana Cedi depreciated by about 50 percent since the start of 2022 to currently sell at GH¢15.10 to one Euro on the forex retail market.

Meanwhile, international research firm Fitch Solutions has projected that the Ghana cedi will continue to depreciate until the first quarter of 2023.

In its latest article on Ghana, it expalained: “Our view is further informed by the fact that previous periods of significant exchange rate weakness in Ghana all lasted roughly 12-14 months suggesting that the cedi will continue to depreciate into the Q123 (the current sell-off started in January 2022). This keeps inflation high, weighing on living standards and eroding support for the government.”

The depreciation of Ghana’s local currency is expected to continue until an IMF-supported programme is secured to restore macroeconomic stability.

MA