Monday, August 4th was exactly 6 months since the Bank of Ghana introduced the new foreign exchange rules.
Citi Business News analysis shows that the cedi has in the past one month seen some recovery and begun to appreciate against some major currencies. This is based on data provided by the Bank of Ghana.
The cedi has depreciated by about 27 percent to major trading currencies from the beginning of the year and about 21 percent after the introduction of the new foreign exchange rules on February 4.
Prior to the introduction of the new rules, the cedi had depreciated by about 8.1 percent to the US dollar, about 6.8percent to the British Pound and 6.4percent to the Euro.
The Cedi’s rate of depreciation against the US dollar in the past month has been better than other months this year. The trend shows one month after the new FX rules were introduced, the rate of depreciation slowed down from 8.1percent to 4.9percent. It however increased in the second month by 6.2percent, dropped to 3.6 percent in the third month, worsened to 4.6 percent in the fourth and slowed down to 2.7percent byJuly 4th. In the past one month to August 4th, the Cedi’s rate of depreciation has fallen ever further to about 0.77%. In all the Cedi has depreciated against the US dollar by about 27.14 percent from the beginning of the year.
The Cedi’s performance against the pound has been impressive. The cedi for the first time this year has appreciated against the Euro. The rate of depreciation slowed down from 6.37percent to 6.35percent in the first month, 5.9 percent in the second, downwards to 4.8 percent in the third month, even further to 2.9 percent in the four and in the period to 4th July, dropped to 2.5percent. From there to August 4th, the cedi has appreciated against the Euro by about 0.38%. In all the Cedi has depreciated against the Euro by about 25 percent from the beginning of the year.
Analyses of the cedi’s performance against the British pound seem to show the most impressive results. The rate of the cedi’s depreciation has slowed down steadily from 6.9 percent to 5.7 percent in the second month, to 5.2percent in the third month, 3.9 in the fourth, and worsened to 4.9 percent in the period to July 4th, the latest analysis has shown the cedi has appreciated against the pound by about 1.03%. In all the Cedi has depreciated against the British Pound by about 28.43% percent from the beginning of the year.
Data from the forex bureaus however shows the cedi has depreciated by about 2.7percent to the US dollar, 2.5percent to the Pound and about 2.9percent to the Euro in the past one month. The Cedi on the Forex market had depreciated by about 31%.
