Latest data from the Bank of Ghana dubbed the Summary of Economic and Financial Data has shown that the cedi depreciated by 5.83% by July this year compared to the same period last year.
The cedi until recently saw a sharp depreciation against the dollar, creating some uncertainty among business associations, calling for the free fall to be halted.
The Bank of Ghana attributed the situation to global trends which it said affected different economies across the world due to an increase in the Feds rate in the U.S.
According to the report, the cedi depreciated by 5.83% for the year on year bases between July 2017 and July 2018.
As a result, the cedi which was trading at 4 cedis, 37 pesewas against the major trading currency the dollar in July 2017 had hit 4 cedis, 69 pesewas by July this year.
Also, the cedi recorded a 2.0% depreciation against the British pound for July 2017 and July 2018.
By July this year the British pound was trading at 6 cedis, 8 pesewas compared to 5 cedis 76 pesewas in the same period last year.
Meanwhile, the cedi depreciated by 2.6 percent against the Euro between July 2017 and July 2018 on year on year basis.
As at today,(24th July,2018), the pound is trading at 6 cedis 15 pesewas while the Euro is trading at 5 cedis 49 pesewas.
The dollar is also at 4 cedis, 69 pesewas at the interbank rate.
The Finance Minister Ken Ofori Atta had stated in his mid-year budget presentation to parliament that the cedi only depreciated by 0.2 percent for the first half of the year compared to 2.0 in 2017.
According to him, the Nana Addo led administration has performed well in stabilizing the local currency.
“The Ghana cedi remained relatively stable both on the interbank and the forex bureau market largely due to improved macro-economic conditions. The interbank market, cumulatively, the cedi has appreciated by 0.2 percent against the U.S dollar during the first five months†he said.
Business operators have constantly complained for the past two months over the constant depreciation of the cedi.
But Mr. Ofori Atta believes the cedi has not seen a huge depreciation this year and as such should not be a problem to Ghanaians.
Meanwhile the minister insists that the cedi has actually performed well in the last 18 months as compared with the performance in the past 6 years.
“There has been volatilities and this was mostly due to external circumstances and speculations. The bank of Ghana has made appropriate interventions and we are confident that the cedi will be stable through the year†he assured.
Source: citibusinessnews.com