The November 2023 Summary of Economic and Financial Data released by the Bank of Ghana reveals a 25.8% depreciation of Ghana's currency, the cedi, as of November 2023.

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The cedi demonstrated relative stability between March and September 2023, trading at GHS 11.01 and GHS 11.13 against the dollar on the interbank foreign exchange market during these months.

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However, a decline occurred in October (GHS 11.50) and November (GHS 11.56).

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The rate of cedi depreciation, which had hovered around 22% since March, increased to 25.4% in October and further rose to 25.8% in November. In the same period, the cedi depreciated by 28.6% against the Pound and 27.7% against the Euro.

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This depreciation trend raises concerns, especially as the government aims to implement long-term measures to alleviate pressure on the local currency, particularly during the festive season.

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Analysts anticipate that heightened demand for the dollar, combined with increased imports, may contribute to further devaluation of the cedi during the holiday season.

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To counteract this trend, industry experts suggest that a timely disbursement of the cocoa syndicated loan and the second tranche of the IMF bailout could help mitigate the depreciation pressures on the cedi.

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