Cedi sells at 14.9275 to a Dollar and buys at 14.9125 per BoG rate on Thursday
The Ghanaian Cedi has recorded slight gains against major international currencies, sparking cautious optimism ahead of the country’s general elections. As of Thursday, December 5, 2024, the Bank of Ghana reported that the Cedi was trading at 14.9125 to a Dollar (buying) and 14.9275 (selling).
Compared to the previous day’s rates of 15.1074 (buying) and 15.1226 (selling) against the Dollar, these figures mark a modest improvement for the local currency. The Cedi also posted gains against the British Pound and the Euro. It now buys at 18.9464 and sells at 18.9668 for the Pound, and buys at 15.6984 and sells at 15.7125 for the Euro.
The currency's recent performance follows months of volatility, with inflationary pressures, global economic uncertainties, and domestic economic challenges contributing to its instability. The slight resurgence has been attributed to a mix of government interventions, including monetary policies by the central bank, as well as the seasonal increase in remittances and forex inflows ahead of the festive period.
However, analysts have expressed reservations about the sustainability of these gains. The current improvement, they argue, may be temporary if underlying structural issues such as high import dependency, fiscal deficits, and public debt levels are not addressed.
The marginal gains are a positive sign, but the real test lies in maintaining this trajectory post-election, said a financial analyst interviewed by local media. The upcoming elections, slated for December 2024, have heightened economic uncertainty, with fears that politically motivated spending could derail progress.
In response, the Bank of Ghana has reiterated its commitment to stabilizing the Cedi through proactive measures. These include regular forex auctions to inject liquidity into the market and tightening monetary policy to curb inflation.
Despite the skepticism, businesses and consumers are welcoming the current respite. A stronger Cedi reduces the cost of imports, which could ease inflationary pressures on essential goods and services.
As Ghana approaches a critical political and economic juncture, the performance of the Cedi remains a key indicator of market confidence. While the recent gains are encouraging, sustained stability will require comprehensive reforms and prudent economic management, regardless of the election outcome.
The coming weeks will be critical in determining whether the Cedi can maintain its momentum or revert to the challenges that have plagued it in recent months. For now, stakeholders continue to monitor developments closely.
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