The Ghanaian Cedi has recently crossed the GH¢16 threshold against the US Dollar on the retail currency market.
A survey conducted by Citi Business News across various forex bureaux and banks in Accra indicates that the dollar is sold at rates ranging from GH¢15.95 to GH¢16.20.
This depreciation follows the International Monetary Fund’s (IMF) recent decision to lift restrictions on dollar auctions by the Bank of Ghana. This move was made possible by a notable increase in the country’s reserves under a US$3 billion economic recovery programme.
According to the Bank of Ghana’s July 2024 Summary of Financial and Economic Data, the Cedi depreciated by approximately 19.6% against the US Dollar on the interbank forex market as of July 2024.
This decline is marginally lower than the 21% drop recorded in the retail market.
Forex bureau operators in Accra have attributed the fluctuating rates to the current economic challenges and recent regulatory changes.
One operator, Bernice Arthur, highlighted the difficulty of balancing customer demands for lower rates with the need to sustain business.
“You know, now things are hard. When customers come, they beg us to reduce the rates, and sometimes we have to lower them to stay in business,” she explained.
Another operator, Edward Lawson, pointed to the impact of currency hoarding on his business.
“Business has become slow because some people are waiting for the dollar to rise further before they exchange it, which is very detrimental,” he said.
Economic and fixed-income analyst Wilson Zilevu identified market sentiment and speculative behaviour among foreign exchange dealers as significant factors driving the current exchange rates. “Speculative behavior is rampant.
The central bank recently offered forex dealers a seven-day option to lock in their prices, but reassurance from the Bank of Ghana about forex supply is crucial,” he advised.
The Bank of Ghana has been urged to provide more transparent communication and support to stabilize the forex market amid ongoing fluctuations.
