“Ghana’s Cedi Hits 16.36 per Dollar as Bank of Ghana Updates Exchange Rates

 

As of Monday, November 11, 2024, the Bank of Ghana’s (BoG) exchange rates show the following values for major currencies:

The Cedi is buying at 16.3419 and selling at 16.3583 per US Dollar.

For the British Pound, the buying rate is 21.0778 and the selling rate is 21.1022.

The Euro is buying at 17.4934 and selling at 17.5107.

These rates reflect the current market conditions and are subject to change depending on fluctuations in the foreign exchange market.

The IEA added that the Cedi faces further risks for the remainder of the year due to several factors. The first is election-related uncertainties, which make the US Dollar a preferred safe-haven asset. The second factor is the uncertainty surrounding the future of the International Monetary Fund (IMF) programme, especially given the unpredictable outcome of the elections and the potential intentions of the incoming administration. These factors are expected to drive increased demand for US Dollars, putting further pressure on the Cedi.

 

The third factor contributing to the Cedi’s continued pressure is the uncertainty surrounding debt negotiations with non-Eurobond commercial creditors. Delays in these negotiations could stall further disbursements under the IMF programme and reduce foreign exchange (FX) supply in the economy. The IEA also noted that the Minister of Finance, Dr. Mohammed Amin Adams, announced that the IMF Board will conduct the third review of Ghana’s programme on December 2, 2024. However, the IEA described this as a delay, as staff had already completed their own review in early October 2024.

 

Finance Minister Dr. Mohammed Amin Adam recently stated that the Cedi had experienced a cumulative depreciation of 14.2% year-to-date, a significant improvement compared to the 27% depreciation recorded during the same period in 2023. He highlighted that this suggested the Cedi had largely stabilised, stressing that the local currency remained relatively strong against major trading currencies such as the US Dollar. Dr. Amin Adam made these remarks during his monthly press briefing on the economy, also noting that the Cedi’s depreciation of 22.7% at the end of 2023 was about half of the 54.2% recorded at the end of 2022.

 

Dr. Mohammed Amin Adam emphasized that despite the recent pressures on exchange rate movements, the Cedi has largely stabilised. He pointed out that the depreciation of the Cedi against the US Dollar had significantly reduced, halving from 54.2% at the end of November 2022 to 27.8% by December 2023. This stability continued into 2024, with a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% during the same period in 2023. He stressed that, based on this comparative data, the Cedi could still be considered strong.

 

 

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