Bloomberg, a prominent financial and media company, has predicted that the value of the Ghana cedi will depreciate further by the end of the year 2024.

According to Bloomberg, the cedi is expected to reach a value of GH¢15.98 against the dollar.

Reports from the Ghana Association of Forex Bureaus indicate that the cedi has recorded a depreciation of over 14% since the beginning of the year. Currently, the dollar sells for GH¢14.75 on the retail market.

Regarding the performance of the cedi on the international market, the financial and media company reported that the cedi is witnessing its longest period of weakness against the dollar and other major currencies.

The local currency has not gained significantly against the dollar in the last 22 trading sessions.

"It is the longest streak according to data compiled by Bloomberg going back to 1994."

On how it arrived at its cedi projection, Bloomberg explained that its "forward pricing is calculated based on the spot rate and the interest rate differentials between the two currencies for the tenor of the forward."

Bloomberg attributes the decline in dollar supply on "a slump in cocoa earnings, with exports dropping by nearly a third to $508 million in the first two months of the year due to adverse weather, disease, and fertilizer shortages."

The depreciation of the cedi has been attributed to a shortage in dollar supply to meet the surging demand.

EAN/SA

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