By The Ghana cedi has depreciated by 8.63% against the dollar since the start of 2024, with ongoing pressure on the local currency.
Bloomberg forecasts further challenges for the cedi as the debt restructuring with Eurobond holders prolongs.
Over the past three weeks, the cedi has faced significant pressure, experiencing substantial declines against the US dollar and other major foreign currencies.
Last week alone, it depreciated by more than 1.30% against the American greenback.
Checks by Joy Business at various forex bureaus reveal that the cedi is currently trading at GH¢13.60 to the dollar.
Bloomberg suggests that the challenges may persist for the local currency, which ranks as Africa’s third-worst-performing currency this year.
The US-based firm indicates that despite the International Monetary Fund’s $3.0 billion bailout following the country’s 2022 debt default, the cedi could continue to weaken.
Despite interventions by the Bank of Ghana in the spot market, the cedi’s performance has been inconsistent, leading to concerns about the inflation outlook.
Should the cedi persist in depreciating against the dollar and other major foreign currencies, the current disinflation trend may reverse, negatively impacting the real sector of the economy.
