The Ghanaian cedi's depreciation against the US dollar continues its upward trajectory on the commercial forex market, with its loss in value nearing 10% in the first four months of 2024. 

Since the year's commencement, the cedi has experienced marginal depreciation, resulting in a year-to-date depreciation of approximately 9.37%. 

This marks a significant decrease from the 22.73% depreciation recorded as of April 2023. 

In real terms, commercial banks are reporting an all-time high exchange rate of GHS 13.055 to a dollar, compared to GHS 11.55 during the same period last year. 

Data from the Bank of Ghana indicates a consistent depreciation trend, with rates of 1.69%, 0.98%, and 1.77% for January, February, and March 2024, respectively, despite efforts such as fresh dollar inflows and forex auctions to Bulk Oil Distribution Companies (BDCs). 

While some analysts project a potential reversal of the cedi's fall in the first half of the year, others fear its impact on inflation. 

To stabilise the cedi, the Bank of Ghana plans to auction $120 million to BDCs in the second quarter of 2024, although persistent demand for dollars by businesses may pose challenges. 

Concerns persist regarding currency volatility, despite maintaining the policy rate at 29% and lending rates averaging over 32%. However, Governor of the Bank of Ghana, Dr. Ernest Addison, expressed optimism at the last Monetary Policy Committee meeting, citing strong reserves from improved remittance inflows as a buffer for the local currency in the upcoming months