• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 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

Cedis Struggle against Dollar Continues: Depreciates by 1.7%

September 25, 2021
Stephen M.Cby Stephen M.C
in Securities/Markets
0
Cedi Posted Mixed Performance in 2021- Databank Research

50 cedi note and the Dollar

According to data from the Bank of Ghana (BoG), the Ghanaian cedi has depreciated by 1.7% to the US Dollar in the first nine months of 2021, starting from January to September 24.

The Bank of Ghana in its release, pegged the interbank rate of the cedi to the dollar for the month of September at GH¢5.86. Though, this rate is slightly higher in the forex market, trading GHc6.04 as at Friday, 24th September, 2021.

According to the Bank of Ghana, prior to the recent pressures on the cedi, the Ghanaian local currency had shown impressive run since the beginning of the year till July, 2021. In January and June for instance, the cedi traded flat as it did not depreciate nor appreciated against the American ‘greenback’. On the average, the exchange rate of one dollar to the cedi in January was GHc5.760 and that of June was GHC5.762. On the other hand, the cedi appreciated against the dollar in the month of February to May. In February, it gained 0.4 percent against the dollar and 0.5 percent in March. Similarly, the cedi appreciated by 0.5 percent and 0.2 percent in April and May respectively.

RelatedPosts

Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns

GSE Bulls Charge Back: Energy, Telecom and Financial Stocks Lead Market Rebound

GSE Poised for Sustained Momentum in H2 2025 – Market Expert Projects Further Gains

However, the cedi lost grip of the dollar and depreciated by 0.7 percent and 1.6 percent in July and August, 2021 respectively. It then hit its highest year-to-date depreciation rate of 1.7 percent in September.

That notwithstanding, the current rate of depreciation of the cedi suggests that the local currency will stay within research institutions and analysts forecast for the year. The Bank of Ghana may even meet its depreciation target for the year, especially when the first tranche of the $1.5 billion Cocoa Syndication Loan hits the Central Bank’s account by the first week of October 2021.

This is expected to boost the supply of the American ‘greenback’ and thereby reduce the pressure on the local currency.

Some analysts blame the current depreciation of the cedi on the repatriation of dividend by some multinationals, beginning June 2021, forcing the Central Bank to regularly intervene in the market, particularly through the Forex Forward Auction.

Meanwhile, the outlook of the cedi is still positive despite the recent pressures.

According to him, there is little to worry about due to the various interventions implemented by the Bank of Ghana as well as the strong reserve position of the country. Ghana’s international reserves presently stands at $11.02 billion.

The Cedi to End the Year Within ¢6.14 and ¢6.32 to Dollar

It can be recalled that Fitch Solutions, a research arm of ratings agency, Fitch, and Databank Research early on predicted that the exchange rate will not exceed GHc6.32 by the end of the year. Fitch Solutions projected GH¢6.32 pesewas to a dollar by the end of the year, meanwhile, Databank Research also predicted GH¢6.14 pesewas.

Fitch attributed a rebound of the global economy which will stimulate economic activities, as the rationale behind its end-year cedi to dollar rate of GH¢6.32, a little above 4% depreciation.
Databank on the other hand said the recent portfolio-induced pressure tampered with its earlier optimism. However, it believes the cedi should remain supported by the gross forex reserves of about $10.99 billion.

READ ALSO: MTN Share Price Plummets Over 9% as Headline Indices Crash

Tags: Cedicedi depreciationDollar
Please login to join discussion
Previous Post

Ghana: Trade Balance Nosedives for the First Time in 8 Months

Next Post

Social media reacts to Milovan Rajevac’s sack as Black Stars Coach

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

Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 
Extractives/Energy

Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 

July 9, 2025
Strategic Talks Strengthen ECOWAS Vision 2050 Drive
Africa

Strategic Talks Strengthen ECOWAS Vision 2050 Drive

July 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

July 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

July 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

July 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

July 9, 2025
Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 
Extractives/Energy

Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 

by Prince AgyapongJuly 9, 2025
Strategic Talks Strengthen ECOWAS Vision 2050 Drive
Africa

Strategic Talks Strengthen ECOWAS Vision 2050 Drive

by Lawrence AnkutseJuly 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

by Esther Korantemaa OffeiJuly 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

by Lawrence AnkutseJuly 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

by Silas Kafui AssemJuly 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

by Comfort AmpomaaJuly 9, 2025
Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 
Strategic Talks Strengthen ECOWAS Vision 2050 Drive
Debby Reveals Professionalism Fuels Female Musicians
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Mustapha Gbande, Party, President.
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
[/vc_row_inner]

Recent News

  • Energy Minister Launches €9.7m Transmission Project to Strengthen National Grid 
  • Strategic Talks Strengthen ECOWAS Vision 2050 Drive
  • Debby Reveals Professionalism Fuels Female Musicians
  • Mass Jail Sentences Deepen Tunisia’s Political Crisis
  • Every NDC Member Is Better Off Today – Gbande
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.