Speculative behavior and foreign currency hoarding are also driving up rates
The Ghanaian Cedi has fallen to GH¢16 against the US Dollar on the currency retail market, with rates ranging from GH¢15.95 to GH¢16.20.
This decline follows the IMF lifting restrictions on dollar auctions by the Bank of Ghana, which had previously been constrained.
The Cedi depreciated about 19.6% against the Dollar by July 2024, slightly less than the 21% decline in retail markets.
Forex bureau operators cite economic hardship and a new Bank of Ghana directive requiring Ghana cards for transactions as contributing factors.
Speculative behavior and foreign currency hoarding are also driving up rates.
Analysts suggest that the Bank of Ghana needs to reassure market players about forex supply to stabilize the situation.
Read full article