By The Ghana cedi has reached GH¢14 against the dollar as depreciation pressures persist without relief.
This has resulted in a year-to-date loss of approximately 12.08% against the American greenback.
Checks conducted by Joy Business reveal that most forex bureaus are selling the dollar for an average of GH¢14.
Despite analysts’ expectations for the local unit to further depreciate against the dollar this week, Fitch Solutions predicts that the cedi will conclude the year at GH¢12.25, suggesting it will regain some of its recent losses in the coming months.
The London-based firm anticipates that the local unit will strengthen as the government advances in restructuring its commercial debt.
The dollar maintains its strength on the global stage.
Recently, the US dollar has maintained its strength, buoyed by increasing US treasury yields on the global stage.
US inflation accelerated to 3.5% year-on-year in March 2024, primarily driven by elevated energy and shelter costs. In response to these developments, the Federal Reserve declared the necessity for sustained higher interest rates to combat inflation and achieve the 2% medium-term target.
Following this announcement, the US dollar index surged by 101 basis points week-on-week, accompanied by rising US treasury yields. Consequently, many African currencies faced pressure last week.
