The rate of depreciation of the Ghana cedi to the US dollar slowed down today following weeks of free fall as government takes decisive action to tame the ailing local currency.
The local currency strengthened by 1.97% to the American ‘greenback’, checks by Joy Business at some leading forex bureaus indicate.
It traded at ¢15.20 to one US dollar on the forex market on October 24, 2022.
The cedi also improved in value against the pound and the euro, going for ¢15.7 and ¢13.55, from the ¢16 and ¢13.90 it traded yesterday, October 24, 2022.
It is, however, unclear whether the improved value of the local currency against the major currencies would be sustained going forward.
Some investors are likely to adopt a wait-and-see attitude until they see an improved supply of dollars or forex to the retail market.
The local currency lost more than 14% value to the dollar last week (October 17-October 21) and even performed worse than the pound and the euro respectively.
The depreciating trend continued yesterday, October 24, 2022, until an announcement by the Information Minister, Kojo Oppong Nkrumah, about the strategies the monetary and fiscal authorities are adopting to stem the rapid fall of the cedi.
This appears to have calmed the markets and the resultant effect is now being felt.
However, a strong performance of the cedi, for now, would depend on the imminent announcement of an economic programme for Ghana by the International Monetary Fund.
Cedi went for ¢15.20 to a dollar yesterday
The Ghana cedi sold for ¢15.20 to the dollar yesterday after the depreciating pressures continued.
It lost 3.4% in value yesterday, October 24, 2022.