• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 2, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Cedi Suffers Over 21% Depreciation Against The US Dollar May 2023- BoG

May 20, 2023
Stephen M.Cby Stephen M.C
in Economy, One Top Story
0
Market Observers Predict the Cedi to Enjoy Steadiness Amidst Pull-Back Factors

Ghanaian Cedi note

The Bank of Ghana’s May 2023 Summary of Economic and Financial Data release has disclosed that the Ghanaian Cedi has come under significant pressure in the first 5 months of the year, recording a depreciation rate of 21.7% against the US dollar.

Meanwhile, this marks a notable increase of 5.8% compared to the depreciation rate of 15.9% observed in May 2022. Starting the year with a depreciation rate of 20.6%, where the Cedi was valued at GHS 10.79 to $1, the currency’s downward trajectory has continued throughout the first five months of 2023. The recent data indicates that the Cedi’s struggles extend beyond the US dollar, with depreciation observed against other major trading currencies, such as the British Pound and the Euro.

Against the Pound, the Cedi experienced a depreciation rate of 24.6% in May, resulting in an exchange rate of GHS 13.68 for £1. This decline highlights the challenges faced by Ghana’s currency and the country’s export competitiveness. Among other reasons, the Pound’s strength and Ghana’s widening trade deficit may have contributed to this unfavorable exchange rate.

RelatedPosts

Ghana Edges Closer to Debt Relief as Finance Minister Hails “Monumental Step” After China Talks

Geopolitical Tensions Could Fuel Inflation and Weaken the Cedi- Seth Terkper Sounds Alarm

Cedi’s Year-to-Date Surge Halved in June, Yet Analysts See Optimism Ahead

Similarly, the BoG report showed that the cedi faced significant devaluation against the Euro, recording a depreciation rate of 23.2% in May. This placed the exchange rate at GHS 11.90 for €1, reflecting the struggles faced by the Ghanaian currency in maintaining its value against the common European currency.

As a country heavily reliant on exports of commodities such as gold, cocoa, and oil, fluctuations in global commodity prices can significantly impact Ghana’s foreign exchange earnings and subsequently affect the value of the Cedi.

While the Bank of Ghana has implemented various measures to stabilize the currency, including foreign exchange interventions and monetary policy adjustments, the continuous depreciation leaves much to be desired and with many questioning the effectiveness of these interventions in addressing the root causes of the Cedi’s decline.

Bank of Ghana FX forward rates auction oversubscribed, accepts bid of USD 50 million
Bank of Ghana building

Moreover, the depreciation of the Cedi may have implications for inflation, import costs, and overall consumer prices in Ghana. Import-dependent sectors, such as energy and manufacturing, could face higher production costs due to increased prices of imported inputs. This could potentially lead to inflationary pressures, impacting the purchasing power of consumers and potentially affecting economic growth.

The report indicated that both short-term stabilization measures and long-term structural reforms have been employed to deal with the issue of depreciation. In the foregoing, export diversification, promoting value addition in key industries, and attracting foreign direct investment are some strategies that could help reduce Ghana’s vulnerability to external shocks and stabilize the Cedi.

As the country seeks to be a regional economic powerhouse and attract investment, addressing currency depreciation and maintaining a stable exchange rate is crucial.

It is imperative that the Nana Addo government, together with the central bank led by Dr Ernest Addison, work in unison to implement effective policies and structural reforms that can bolster confidence in the Cedi, attract foreign investment, and foster sustainable economic growth.

READ ALSO: NPP To Win Kumawu Seat– Ahiagbah

Please login to join discussion
Previous Post

NPP To Win Kumawu Seat– Ahiagbah

Next Post

Ghana’s Debt Declined  To Ghc 434.6 billion In December 2022- BoG

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Communication Minister Engages MTN Over Data Price Glitch and Delays
General News

Communication Minister Engages MTN Over Data Price Glitch and Delays

July 1, 2025
Kepa Arrizabalaga
Uncategorized

Arsenal Signs Kepa from London Rival

July 1, 2025
Hamza Suhuyini Sayibu, President, GBA
General News

Why Hasn’t GBA Sued Over Chief Justice Suspension?

July 1, 2025
President John Dramani Mahama
General News

Mahama Calls for National Unity, Moral Renewal at Muslims’ National Day of Prayer

July 1, 2025
Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating
Banking

Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating

July 1, 2025
Gas Flaring Waste
Extractives/Energy

Nigeria’s Gas Production Dips in May, Fuel Supply Drops to 62% 

July 1, 2025
Communication Minister Engages MTN Over Data Price Glitch and Delays
General News

Communication Minister Engages MTN Over Data Price Glitch and Delays

by Silas Kafui AssemJuly 1, 2025
Kepa Arrizabalaga
Uncategorized

Arsenal Signs Kepa from London Rival

by Evans Junior OwuJuly 1, 2025
Hamza Suhuyini Sayibu, President, GBA
General News

Why Hasn’t GBA Sued Over Chief Justice Suspension?

by Silas Kafui AssemJuly 1, 2025
President John Dramani Mahama
General News

Mahama Calls for National Unity, Moral Renewal at Muslims’ National Day of Prayer

by Evans Junior OwuJuly 1, 2025
Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating
Banking

Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating

by Stephen M.CJuly 1, 2025
Gas Flaring Waste
Extractives/Energy

Nigeria’s Gas Production Dips in May, Fuel Supply Drops to 62% 

by Prince AgyapongJuly 1, 2025
Communication Minister Engages MTN Over Data Price Glitch and Delays
Kepa Arrizabalaga
Hamza Suhuyini Sayibu, President, GBA
President John Dramani Mahama
Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating
Gas Flaring Waste
[/vc_row_inner]

Recent News

  • Communication Minister Engages MTN Over Data Price Glitch and Delays
  • Arsenal Signs Kepa from London Rival
  • Why Hasn’t GBA Sued Over Chief Justice Suspension?
  • Mahama Calls for National Unity, Moral Renewal at Muslims’ National Day of Prayer
  • Hubtel Dominates 2025 Digital Innovation Awards with Four Major Wins Celebrating
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.