The Ghanaian cedi has continued its decline, now trading at GH¢17.10 to the US dollar, marking a significant year-to-date loss of nearly 29%. This depreciation is intensifying concerns over rising inflation and the cost of living as import costs and essential goods prices surge.
Experts attribute the cedi’s sustained weakening to several factors, including high demand for foreign currency to support imports, reduced foreign exchange inflows, and ongoing economic challenges. The depreciation pressures the Bank of Ghana, which has intervened in the past by injecting dollars into the forex market, though this approach has seen limited success in stabilizing the currency.
Businesses and consumers alike are feeling the impact, with imported goods becoming more expensive. Many companies are adjusting prices upwards, which could drive inflation even higher. The cedi’s depreciation is a critical issue ahead of the December elections, as political parties debate policies on economic management and propose potential solutions for exchange rate stability.
The government has introduced some initiatives to counter this trend, but these efforts have yet to yield noticeable improvement. In the meantime, analysts urge businesses and consumers to brace for potential further depreciation, highlighting the urgent need for structural reforms to stabilize the cedi in the long term.
This latest exchange rate has ignited widespread discussions among the public, economists, and policymakers about Ghana’s economic future and the measures needed to strengthen the national currency.
