Many Ghanaians will attest that 2022 was not a good year, particularly in terms of the performance of the Ghanaian economy.
All macroeconomic indicators appear to be pointing in the wrong direction, with inflation reaching previously unheard-of levels (currently hovering above 30 percent). As a result, the prices of food, transportation, and oil products have become major concerns for many Ghanaians.
The question is why prices in Ghana are rising at an unprecedented rate. One major reason is the depreciation of the Ghanaian shillingCedi. According to Bloomberg, 2022 has not been a good year for the cedi, with the currency currently losing about 40% of its value and ranking as the world's second worst performing currency among 150 currencies.
But how did we arrive here? GhanaWeb examines the performance of the cedi against one major currency, the US dollar (dollar).
Cedi to dollar exchange rate in January 2022
According to Bank of Ghana (BoG) data, the cedi/dollar rate was GH5.9 at the start of January 2022. However, at the interbank level, it fell to GH6.02, indicating a nearly 12% depreciation.
Cedi-to-dollar exchange rate in February 2022
According to data from the BoG, the cedi had depreciated by about 10% against the dollar as of the end of February 2022, from GH6.02 at the end of January 2022 to GH6.6.
Rate of Cedi to Dollar in March 2022
The cedi depreciated significantly against the dollar in March 2022, from GH6.6 to GH7.1, a month-on-month depreciation of approximately 8%.
Cedi to dollar rate in April 2022
At the end of April 2022, the cedi depreciated by less than 1 percent month-on-month, from GH7.1122 to GH7.1128.
Cedi to dollar rate in May 2022
The cedi to dollar rate at the end of May 2022 was GH7.14, which again signifies a less than 1 percent drop from the GH7.11 cedi dollar rate recorded at the end of April 2022.
Cedi to dollar rate in June 2022
For June 2022, the cedi depreciated to GH7.23 per dollar, which showed a depreciating rate of 1.3 percent compared to the GH7.14 exchange rate for May 2022.
Cedi to dollar rate in July 2022
The value of the cedi reduced to GH7.61 by the end of July from the GH7.23 per dollar it started with for the month. This showed an approximate percentage depreciation of 5 percent.
Cedi to dollar exchange rate in July 2022
On the Bank of Ghana's Interbank Forex Rates for Friday, August 19, 2022, the cedi is trading at 8.1031. This represents a 6.6 percent month-on-month depreciation from the previous month.
According to the Bank of Ghana, the cedi-dollar rate was 5.9 at the start of 2022; it is now 8.1. This means that the Ghana Cedi's value has dropped by roughly 40% between January 2022 and today, August 19, 2022.
The figures above show which currency is winning the 'fight' between the cedi and the dollar.
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