The Ghanaian Cedi has surpassed the GH¢16 mark against the US Dollar in the currency retail market. A survey by Citi Business News across various forex bureaux and banks in Accra revealed that the dollar is being sold at rates between GH¢15.95 and GH¢16.20.
This development follows the International Monetary Fund’s (IMF) decision to lift restrictions on dollar auctions by the Bank of Ghana, spurred by a significant increase in the country’s reserves under a US$3 billion economic recovery programme. According to the Bank of Ghana’s July 2024 Summary of Financial and Economic Data, the Cedi depreciated by about 19.6% against the US Dollar on the interbank forex market as of July 2024, a slightly better performance than the 21% decline observed in the retail market.
Forex bureau operators in the capital attributed the rising exchange rates to the challenging economic environment and a new Bank of Ghana directive requiring customers to present their Ghana cards as proof of identification before transacting.
Bernice Arthur, a forex bureau operator, noted, “Times are tough, and customers often plead for lower rates. If we accommodate them, it affects our business, so we sometimes have to negotiate, but this can drive customers away.”
Another operator, Edward Lawson, mentioned that business has slowed due to some customers hoarding foreign currencies in anticipation of further rate increases. “Business is slow because some are waiting for the dollar to rise before they exchange, which is not good.”
Economic and Fixed Income Analyst Wilson Zilevu pointed to market sentiment as a major driver of the high exchange rates, citing speculative behavior among foreign exchange dealers. He urged the Bank of Ghana to provide reassurance to industry players regarding the availability of forex in the market.
