The devaluation pressure on the Ghana cedi is still there, as it has dropped to GH¢14 to the US dollar.
As a result, it has lost almost 12.08% of its value to the US dollar this year.
According to checks conducted by Joy Business, the majority of forex bureaus are selling the dollar for an average of GH¢14 cedis in exchange for the US dollar.
The majority of analysts had predicted that the local currency would continue to weaken this week versus the US dollar.
Notably, Fitch Solutions forecasted the cedi to close the year at GH¢12 cedis 25, claiming it will recover a portion of its recent losses in the months to come.
The London-based company thinks that as the government moves forward with restructuring its commercial debt, the local unit will get stronger.
The US dollar has been stronger recently as higher US Treasury rates have supported the US currency internationally.
March 2024 saw a sharp increase in US inflation to 3.5% annually, driven by rising energy and housing expenses. In response to these events, the Federal Reserve said that in order to keep inflation below the 2% medium-term objective, interest rates would need to be higher for a longer period of time.
Following the news, US Treasury rates and the US dollar index increased by 101 basis points on a weekly basis, which hurt most African currencies last week.
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