The Ghanaian cedi has experienced a significant decline in value against the US dollar, according to a report released by the Bank of Ghana. The report indicates that the cedi has lost 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.
The sharp decline in the value of the cedi is attributed to a variety of factors, including inflation, rising import costs, and a decrease in foreign exchange reserves. The news of the cedi’s decline comes at a time when Ghana is already grappling with economic challenges, including high levels of debt and a widening trade deficit.