The cedi failed to continue its upward trend on Monday, December 16, losing value against the dollar after weeks of steady appreciation. Since November 8, the currency had been gaining ground, improving from highs of GH¢16.55 to levels of GH¢14.67 by Friday, December 13. However, the currency traded at GH¢14.73 on Monday, signaling a potential end to its recent strength.
Fixed income and currency trader Kodzo Dziwornu Letsa told The High Street Journal that speculative trading might be at play, indicating a possible market stabilization. “The pricing has stabilized with occasional surges, which could suggest a bottoming of the cedi-dollar pair,” he noted. Despite the Central Bank injecting over $840 million into the market in the last month to stabilize the currency, economists have raised concerns over the sustainability of these measures, with some suggesting they were politically motivated due to the recent presidential elections.
While analysts remain cautious, it’s too early to determine whether the cedi’s Monday decline marks a permanent reversal or just a temporary fluctuation.
