This is against about 3.7 per cent depreciation rate in the first half of 2017 reported by the Bank of Ghana (BoG) compared with a depreciation of 3.3 percent in the same period of 2016.
In the year to August 2017, the Ghana cedi depreciated by 4.5 percent against the US dollar, compared with a depreciation of 3.9 percent in the same period of 2016.
While Frontline Capital Advisors quotes a depreciation rate of 4.02 percent for the third quarter, NDK Financial Services is quoting 4.75 percent depreciation rate between January 2017 and September 2017.
The cedi traded between 4.38 and 4.39 against the US dollar on the interbank forex market on October 10, 2017, below the GH¢4.52 end- year forecast by BMI, research outfit of ratings agency Fitch.
Among six African currencies captured by Frontline Capital Advisors, the local currency only performed better than the Nigerian naira which lost 15.05 percent in value against the US dollar. Kenya shillings also lost some 0.88 percent value against the world’s powerful currency but better than the cedi.
However, Moroccan dirham, Mauritius rupees and Egypt pounds increased in value against the US dollar by 7.03, 5.89 and 2.97 percent respectively against the American dollar.
Many analysts believe that government recent policies are manifesting on the economy, hence the improvement in the local currency against the foreign currencies.
The Central Bank recently said foreign exchange market conditions remain relatively stable supported by improved liquidity conditions, despite some marginal demand pressures. It added that from January 2017 to August 2017, the Ghana cedi depreciated by 4.5 per cent against the US dollar, compared with a depreciation of 3.9 per cent in the same period of 2016.
But it appears the cedi witnessed some improvement in the month of September 2017.
Finance house, NDK Financial Services recent report revealed that the cedi has recovered to 4.40/US dollar, after depreciating to 4.60/US dollar in early March.
The Ghana Cedi ended January 2017 with a depreciation rate of 2.80 percent against the US dollar. This was however against an appreciation of 0.43 percent against the world’s most powerful currency in the first week of January 2017, explaining the volatile nature of the currency.
The BoG had in July maintained that building on the gains in the cedi could require continued improvement in the policy environment and increased foreign exchange liquidity.
Financial and market portal ‘Doobia’ said “we could see some stability of the local currency in the second half of the year as we boost foreign exchange reserves from increased oil revenue and proceeds from COCOBOD syndication”.
BMI report had noted that it expects the cedi to strengthen against the US dollar within the next several months, following the completion of Ghana’s fourth review under its Emergency Credit Facility programme with the IMF in August 2017.
Presently, the cedi is trading at about 4.44 against the US dollar at the forex bureau.