By The Ghana cedi has depreciated by approximately 14.6% against the US dollar as of May 2024, according to the Bank of Ghana.
This depreciation is less severe than the nearly 20% decline observed on the retail market.
The Central Bank’s May 2024 Summary of Financial and Economic Data shows that the cedi lost 7.7% of its value against the dollar in March 2024 and a further 10.5% in April 2024.
Currently, the cedi averages GH¢15 per dollar on the retail market, while the Bank of Ghana quotes the exchange rate at GH¢13.01 per dollar.
Against the pound, the cedi has depreciated by 14.5%, trading at GH¢17.70.
The cedi has also lost 12.9% of its value against the euro, selling at GH¢15.07.
The Finance Minister, Dr. Mohammed Amin Adam, assured on Friday, May 24, 2024, that his office is collaborating with the Bank of Ghana to implement measures to address the depreciation of the cedi.
He stated that these measures include accelerating the fiscal consolidation process by rationalizing spending and enhancing revenue mobilization, intensifying the gold-for-oil program, and implementing appropriate foreign exchange interventions by the Bank of Ghana.
Other measures include intensifying the gold-for-reserve program, disbursing the third tranche under the second review of the International Monetary Fund-supported PC-PEG after the IMF Executive Board approval in June 2024, and disbursements from other ongoing projects, including a $150 million World Bank loan. Additionally, the expected disbursement of $300 million under the World Bank DPO2, possibly in the third quarter of 2024, is also planned.
Meanwhile, the depreciation pressures on the cedi have eased due to improved foreign exchange (FX) liquidity, particularly of the US dollar.
This follows significant intervention by the Bank of Ghana last week, which provided about $59 million on the spot market and auctioned $20 million to the Bulk Oil Distribution Companies.
