Cedi Depreciates By 2.5% In 8 Months- BoG

The Cedi recorded 2.5% depreciation between February 2023 and September 2023, the Bank of Ghana has reported affirming the currency has gained some level of stability in the face of the United States Dollar.

This was after the 20.6 per cent depreciation in January 2023,

In its Monetary Policy Report this month, the Central Bank said the currency has generally remained stable compared to the same period last year.

“The Ghana cedi has remained stable from the beginning of the year to date, except in January when it depreciated sharply on account of the uncertainties at the end of 2022 associated with the launch of the DDEP. The Ghana cedi depreciated by 20.6 percent in January 2023, and has remained generally stable since then, with a cumulative depreciation of 2.5 percent between February and September 18, 2023.”

The stability has been attributed to improved foreign exchange supply through the International Monetary Fund (IMF) flows, the Bank of Ghana’s Domestic Gold Purchase Programme, and purchases of repatriated export proceeds from mining companies and oil and gas producers.

“Furthermore, the Bank’s FX forward auctions for Bulk Oil Distribution Companies have helped remove the disorderly conduct in the market and contributed to the exchange rate stability.”

As of September 25, 2023, the cedi was trading around GHc11 per dollar; around GhC13 per sterling; and around GHc11 per Euro.

According to the Bank, the cedi depreciated by 30% against the US dollar in 2022 after reversals of some of the losses in December.