The Ghana cedi experienced a 3.95% decline in value against the US dollar in October 2024, bringing its year-to-date depreciation to nearly 29%. This drop comes despite Bank of Ghana Governor Dr. Ernest Addison’s earlier assertion that the cedi would gain ground against the dollar.
Heightened demand pressures drove the depreciation, with the cedi also losing value against the British pound and Euro. Efforts by the Bank of Ghana to stabilize the currency, including auctioning US$20 million to Bulk Oil Distributors and selling US$81.47 million, had minimal impact.
Analysts predict the cedi will benefit from the Bank’s resumed daily interventions, providing stability in coming weeks. However, near-term prospects look bleak due to persistent demand pressures and potential US dollar strengthening ahead of the US presidential election and Federal Reserve’s interest rate decision.
Ruth Abla ADJORLOLO
