In the latest release of the Bank of Ghana’s September 2023 Summary of Economic and Financial Data, the Cedi came under significant pressure, recording a depreciation rate of 22.5% against the US dollar. This marks a notable decrease of 15% compared to the depreciation rate of 37.5% observed in September 2022.
Starting the year with a depreciation rate of 20.6%, where the Cedi was valued at GHS 10.79 to $1, the currency’s downward trajectory has continued throughout the nine months of 2023. The recent data indicates that the Cedi’s struggles extend beyond the US dollar, with depreciation observed against other major trading currencies, such as the British Pound and the Euro.
Against the Pound, the Cedi experienced a depreciation rate of 24.9% in September, resulting in an exchange rate of GHS 13.72 for £1. This decline highlights the challenges faced by Ghana’s currency and the country’s export competitiveness. The strengthening of the Pound may have contributed to this unfavorable exchange rate.
Similarly, the Cedi faced significant devaluation against the Euro, recording a depreciation rate of 22.8% in September. This placed the exchange rate at GHS 11.83 for €1, reflecting the struggles faced by the Ghanaian currency in maintaining its value against the common European currency.
These depreciation trends against major currencies indicate the broader challenges faced by Ghana’s economy, including potential inflationary pressures, external trade imbalances, and domestic economic factors.