The depreciation pressures on the Ghana cedi continued relentlessly today as the local currency sold at ¢11.62 pesewas in the retail market.
This is almost 6% depreciation since Friday, October 7th.
Checks by Joy Business at some forex bureaus indicate that the supply of dollars in circulation is insufficient. Some forex bureaus are actually selling the dollar a little above ¢11.62.
Some of the operators confirmed that the demand for the ‘American greenback’ have reached an all-time high, similar to the 1980’s and early 90’s.
The cedi has since January this year lost more than 40% in value to the US dollar, a performance that has also impacted negatively on inflation.
The cedi woes has been attributed largely to imbalances in the Ghanaian economy, particularly elevated debt level and a large fiscal deficit. This has compelled some foreign investors holding Ghana cedi and dollar denominated bonds to sell their investments and exit the market.
1 dollar hits ¢11.30
The cedi went for ¢11.30 to a dollar yesterday, October 12, 2022, in the retail market.
The situation appears to be worsening every day, as many analysts believe the only solution now is an imminent intervention from the International Monetary Fund.