According to the Bank of Ghana, the cedi’s depreciation against the dollar will be 22.1% as of March 2023.
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The Central Bank set the interbank exchange rate for the cedi at 11.104 to one US dollar in its most recent Report of Economic and Financial Statistics.
The local currency depreciated by 22.1% in February 2023 compared to the US dollar, but only by 20.6% in January 2023. This came after the 19.1% depreciation estimate from previously was updated.
The cedi’s performance in March 2023 compared to February 2023 shows a significant slowdown in the local currency’s appreciation against the dollar.
In March 2023, the value of the local currencies, the pound and the euro, fell by 23.5% and 23.1%, respectively.
The cedi is trading for roughly 12.50 to one US dollar in the FX or retail market, where it seems to be doing a little bit better.
Several economists had forecast a fluctuating performance of the cedi against the US dollar earlier this week.
Some of those who spoke with media representatives claim that the increasing demand for the US dollar will lead to conflicting developments on the currency market.
Although the government’s renewal of coupon payments and the Finance Minister’s trip to China for debt restructuring negotiations may have boosted market sentiment, economists do not believe that these factors alone were responsible for the cedi’s recent gains against the US dollar.
On strong corporate demand last week, the local currency also declined against the dollar, the pound, and the euro by 0.20%, 1.16%, and 0.95%, respectively.
