The Ghana cedi has crossed the feared ¢5 mark against the US dollar after the local currency continued to depreciate against the dollar over the past week.
The cedi’s further depreciation had been influenced by the sudden demand for dollars by businesses in the country to finance their imports.
The Ghana cedi which was trading at around ¢4.80 some two weeks ago has now hit the ¢4.90 range before it closed at ¢5.1.
For many, the test now is whether demand would again outwit supply for the cedi to depreciate further in the coming weeks or the Central Bank would increase supply for the local currency.
This, some belief might ease the pressure to allow the local currency to slightly appreciate and come back to the ¢4 range.
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According to Trading Economics, The Ghanaian Cedi is expected to trade at 4.95 by the end of this quarter. Trading Economics has estimated that Ghana cedi will trade at 5.13 in 12 months’ time.
Historically, the Ghanaian Cedi reached an all-time high of 4.99 in January of 2019 and a record low of 0.90 in July of 2007.
