Dollar notes and Cedi notes
The US dollar surged to its highest point since July amid early signs that Donald Trump had an edge in key states in the US presidential race, which fueled demand for “Trump trades” linked to his protectionist policies.
This rally saw a significant drop in other currencies, with the euro, yen, and Australian dollar all losing ground.
The rise in the dollar poses a challenge for the Ghanaian cedi, potentially leading to depreciation and reversing inflation gains in Ghana, where inflation stood at 21.5% as of September.
A stronger dollar could force the Bank of Ghana to adopt tighter monetary policies to manage inflation.
Analysts, including Fitch Solutions, warned that a potential Trump presidency in 2025 may exacerbate this pressure on the cedi, prompting the central bank to increase interest rates.
The cedi, which has already depreciated 24.3% against the dollar in 2024, remains one of Sub-Saharan Africa’s weakest currencies.
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