The November 2023 Summary of Economic and Financial Data by the Bank of Ghana has put the depreciation of Ghana’s currency – the cedi – at 25.8% as of November 2023.
Per the data, the cedi had remained relatively stable between March and September 2023, selling at GHS 11.01 and GHS 11.13 to a dollar, respectively, on the interbank foreign exchange market.
However, the local currency lost grip to the American greenback for the months of October (GHS 11.50) and November (GHS 11.56).
The rate of depreciation of the cedi had hovered around 22 percent since March but is now at 25.8 percent, having jumped to 25.4 percent in October.
With regard to the Pound and the Euro, the cedi depreciated by 28.6% to the Pound and 27.7% to the Euro in the same period under review.
This rate of depreciation comes at a time when the government needs to adopt long-term measures that will address the pressure that mounts on the local currency during the festive season.
Industry watchers are projecting that an increase in the demand for the dollar, coupled with high imports, may force the cedi to lose some value against the dollar this yuletide.
Many reaffirm that a timely release of the cocoa syndicated loan and the second tranche of the IMF bailout can tame the depreciation.