Ghana cedi makes monthly gains but falls 17.5% against US dollar first ten months of 2012

The Ghana cedi is steadily gaining against the US dollar on monthly basei, according to the Bank of Ghana (BoG).

But the currency, from the beginning of the year to October, has fallen 17.5% against the dollar.

The BoG, in a Monetary Policy Committee (MPC) press statement November 14, 2012, said “From January to October 2012, the Ghana cedi recorded a cumulative depreciation of 17.5% against the US dollar.”

The central bank compared the 2012 ten-month period depreciation to that of 2011 which recorded 3.9%.

However, the BoG stated that the currency has made some gains against the US dollar on monthly basis.

“In September 2012, the Ghana cedi appreciated by 0.1% against the US dollar, and again appreciated by 0.5% in October,” the statement said.

“In trade weighted terms, the real effective exchange rate depreciated by 5.4% from January to October 2012 compared to a depreciation of 2.6% in the same period of 2011,” it added.

The BoG said the appreciation of the cedi was as a result of the “bank’s policy measures” which continues to impact positively on the foreign exchange market.

According to the central bank, exchange rate pressures, which threatened macroeconomic stability and heightened inflationary pressures during the first half of the year, have eased largely as a result of the policy measures implemented.

“In the past two months, we have observed some marginal appreciation of the cedi relative to the US dollar,” Acting governor of the Bank, Dr Kofi Wampah told the press.

The reduced volatility in the foreign exchange market has helped to lower inflation expectations in the near term, he added.

By Ekow Quandzie