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Cedi Depreciates Marginally Against Dollar: Sells For GH¢12.5 at Forex Bureaus And GH¢8 On Interbank Market

  • It appears the cedi’s rise against the US dollar has begun to stall as the local currency has started to depreciate
  • The cedi is selling for GH¢12.5 for $1 although Bank of Ghana-approved rates are much lower, at GH¢8
  • The big gap in the BoG-approved rates and the forex rates have caused many to think the appreciation was a farce

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The cedi depreciated marginally against the US dollar on Wednesday, December 21, 2022, triggering concerns from market watchers.

But the slight fall in Ghana’s local currency on Wednesday after a record four-week appreciation against the American greenback is not the only concern for the watchers.

The significant difference in the rates quoted by the Bank of Ghana and forex bureaus in the capital is also an issue.

The cedi seems to be depreciating again
L-R: Finance minister Ken Ofori-Atta celebrates the cedi appreciation in 2019, the rates displayed by a forex bureau and some Ghana cedi notes. Source: UGC.
Source: UGC

The central bank’s approved interbank rates on December 21 quotes the cedi as trading against the dollar at a buying price of GH¢8.0000 and a selling price of GH¢8.0080.

Read also

Payments company Wise suspends cedi transfers amid rapid appreciation

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About 24 hours earlier the cedi was trading at a buying price of GH¢7.9970 and a selling price of GH¢8.0050.

Meanwhile, on Wednesday, December 21, forex bureaus in Accra quoted $1 at a buying price of GH¢10.50 and a selling rate of GH¢12.50.

Bloomberg has reported recently that the cedi posted the world’s biggest gain against the US Dollar appreciating by at least 30% between October and the first two weeks in December 2022, amid Ghana’s debt restructuring move.

Forex rates show the cedi depreciated marginally on December 21.
The rates quoted for the cedi against major trading currencies by a forex bureau in Accra on December 21, 2022. Source: UGC.
Source: UGC

Cedi Appreciation Against US Dollar Ruled As A Farce By Some Experts

According to some industry watchers, the cedi’s unprecedented appreciation is baffling to much that there must be something going on.

Bright Simons, a senior policy analyst at think IMANI Centre for Policy and Education has explained that the Ghana government was using its reserves to strengthen the dollar – a move that some experts have described as a dangerous gamble.

Read also

Cedi appreciates in value again selling for GH¢8 to $1 on interbank, GH¢10.50 on forex market

Appreciation of Ghana Cedi Against Dollar Stirs Concerns As 3 Experts Remain Sceptical

Meanwhile, has reported in a separate story that although the cedi’s appreciation has been a relief for the business community and ordinary Ghanaians, three experts are not convinced that the rapid rise of the cedi against the dollar is worth celebrating.

They warned that things could get worse.

Bright Simons, Prof Godfred Alufar Bokpin and Emmanuel Darkwa want Ghanaians to be measured in their excitement because the appreciation of the cedi is not founded on sound economic indicators.

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