A data from the Bank of Ghana interbank exchange market has indicated that the local currency recorded its worst half-year performance since 2015.
Cedi’s performance, according to the data, was characterised by a very sharp depreciation in the first three months of the year, depreciating by at least 7.9 percent as the Bank of Ghana struggled to meet the demand for the dollar.
As at June 29 this year, the cedi has depreciated by 8.2 percent, the worst since the local currency recorded 26.2 percent depreciation in 2015.
Since the first quarter performance, the central bank has boosted its foreign reserves through the issuance of a $3 billion Eurobond as well as reinforcement of a number of forex directives.
The issuance of the bond proved key in providing the bank with some dollar inflows to mitigate the demand by traders and corporates for the greenback, resulting in a slower depreciation as compared to the start of the year.
Notwithstanding the measures taken by the central bank, the cedi’s depreciation for the first half of 2019 was worst off compared to the 3.7%, 3.6% and 2.3% recorded in 2016, 2017 and 2018 respectively.
Credit: Business Insider