The Ghanaian cedi has lost 30.56% against the US dollar in 6months. The drop in the Cedi comes despite Ghana’s central bank’s hawkish stance to stamp out inflation.
As the dollar index (DXY) maintains its bullish momentum, the Cedi seems to be heading in the opposite direction. At the time of writing this article, the USD/GHS up 30.56% (YTD) to trade a 7.89 Cedi.
At a time when Ghana is facing economic disruptions caused by the Russian-Ukraine war, a stronger US dollar supported by hikes in US interest rates would only accelerate the depreciation.