The Devaluation of Ghana’s Cedi

The Cedi, which has depreciated in value in recent months, continues to struggle against major foreign currencies.

Reuters reports ,“analysts had expressed worry about the weakening cedi due to rising imports for the oil industry and added that inflation had trended upwards, making life difficult for the locals even though economic growth had increased due to oil production.” Statistics show that the cedi has lost over a third of its value since Ghana began producing oil in November 2010, trading currently at around 1.95 per dollar.

The Ghanaian Cedi exchange rate depreciated by 4.24 percent against the US Dollar during the last month and in the last 12 months, the Ghanaian Cedi exchange rate depreciated by 22.96 percent against the US Dollar. Historically, from 2009 to 2012, the US Dollar – Cedi exchange averaged 1.50, reaching an historical high of 1.95 in July 2012 and a record low of 1.39 in May of 2010. The Ghanaian Cedi spot exchange rate specifies how much one currency, in this case the US Dollar, is currently worth against the Ghanaian Cedi.