In the first month of 2023, the Ghana cedi lost significant value against the dollar, declining by 19.1%.
The cedi traded in the interbank market in January 2023 at a rate of ¢10.60 to one US dollar, up from ¢8.57 on December 31, 2022, according to the Bank of Ghana’s January 2023 Summary of Economic and Financial Data.
However, the Central Bank estimated a 30% decline in the value of the Ghana cedi versus the US dollar in 2022.
In January 2023, the value of the local currencies, the pound and the euro fell by 21.4% and 20.7%, respectively.
[the_ad id=”2914″]
After seeing some sustained stability for the most of December 2022, the local currency began to experience significant pressure from the American currency in January 2023.
This came after Ghana and the International Monetary Fund established a staff-level agreement.
Thus, in January 2023, the cedi was the second-weakest currency among the top 15 currencies in Sub-Saharan Africa.
It’s still there as of right now.
On the FX or retail market, it was offered at a price of ¢13.10 for every US dollar, but its value has subsequently significantly increased to ¢12.90.
[the_ad id=”2914″]
This week, the dollar and the major foreign currencies showed continued stability.
Some observers have ascribed the cedi’s little increase to the program’s bartering of gold for oil, which has reduced the need for foreign exchange to fund the nation’s oil imports.
41,000 metric tonnes of oil, the first phase in the barter for gold, arrived last week.
Prior to this week, the local currency, which had dropped 1.55% in value against the US dollar the previous week, traded at a mid-rate of ¢12.90.
Read Also:
Ghana’s Cedi ranked as the world’s worst performing currency in 2022.
10 Reasons For The Cedi’s Recent Gains Against the Dollar
[the_ad id=”2914″]
