Cedi Plummets Against Major Currencies Despite Central Bank Interventions, Raising Economic Concerns

The cedi has plummeted against major currencies due to heightened corporate demand and persistent foreign exchange pressure, raising concerns about inflation and liquidity.

Despite over $106 million injected into the FX market by the Bank of Ghana, the cedi continues to depreciate against major currencies.

The market expected the cedi to be firmer after recent IMF and World Bank forex inflows, but corporate demand continues to exert downward pressure.

Analysts anticipate the cedi will face ongoing challenges amid persisting FX demand and inflationary pressures.

The government's gold-for-oil policy has helped reduce pressure on forex, but the cedi remains volatile, inching toward 13 cedis per U.S. dollar.