The struggles of the Ghana cedi continue as the local currency experienced a 3.95 percent decline in value against the US dollar in October 2024, resulting in a year-to-date depreciation of nearly 29 percent.

The Bank of Ghana recently stated that it has enough reserves to support the cedi, especially heading into the festive seasons when there is typically an increase in economic activity.

However, the local currency depreciated by 1.50 percent against the British pound and 0.69 percent against the Euro in the last week.

As part of efforts to stabilize the cedi’s performance, the Central Bank auctioned some US$20 million to the Bulk Oil Distributors (BDCs) and sold US$81.47 million during the 7-day forward auction.

However, these interventions seem to have not yielded positive results as the demand for the greenback has increased.

As of November 5, 2024, the cedi was selling around GH¢17.25 to US$1 on the retail market, indicating a further decline in the cedi’s value against major trading currencies.

To address this issue, the Bank of Ghana plans to resume daily intervention in the spot market to address the outstanding corporate foreign exchange demand and bring stability in the upcoming weeks.

MA