The Ghanaian Cedi has crossed the GH¢16 mark against the US Dollar on the currency retail market.
A survey conducted by the Citi Business News team at various forex bureaux and banks in Accra revealed that the dollar is being sold at rates ranging from GH¢15.95 to GH¢16.20.
This development occurs as the International Monetary Fund (IMF) recently lifted restrictions on dollar auctions by the Bank of Ghana, following a significant increase in the country’s reserves under a US$3 billion economic recovery programme.
According to the July 2024 Summary of Financial and Economic Data from the Bank of Ghana, the Cedi depreciated by approximately 19.6% against the US Dollar on the interbank forex market as of July 2024. This rate of depreciation is slightly lower than the 21% decline observed in the retail market
When the Citi Business News team visited some forex bureaux within the capital, some operators cited the current economic situation and the recent directive by the Bank of Ghana requiring Ghana cards as proof of identification from customers before transacting any service.
A forex bureau operator, Bernice Arthur, noted: “You know, now things are hard. So when the customers come, they would be begging that we should reduce the rates, you know, and when we do that, it will also affect the business. So we bargain and sometimes the customers will leave. Other times, too, we need to come down for them so that at least we can still be in business. ”
Meanwhile, another Forex bureau operator, Edward Lawson, linked the slow pace of his business to the hoarding of foreign currencies in anticipation of higher rates.
“Business has become slow because some are waiting for the dollar to rise before they come and change, which is very bad.”
Economic and Fixed Income Analyst Wilson Zilevu identified market sentiment as a key factor driving the high exchange rates.
“Speculative behaviour of foreign exchange dealers is all churning out today. Recently, the central bank also organized a seven-day option for foreign exchange dealers where they can lock in their prices.”
He urged the Bank of Ghana (BoG) to reassure industry players about the supply of forex in the market.