The cedi appreciated for the second consecutive day on Wednesday, largely due to the enforcement of regulations governing the forex market and a crackdown on illegal operators. The dollar dropped further to GH¢15.20 at Forex Bureaux, down from GH¢15.50 on Tuesday and GH¢16.30 on Monday. On the interbank market, the dollar opened trading lower at GH¢14.95 for bids and GH¢15.10 for offers, compared to GH¢14.98 and GH¢15.18 on Tuesday.
On Tuesday, the Bank of Ghana (BoG) enforced restrictions on the interbank market, leading to the reversal of two trades, which contributed to the drop in the dollar rate. The retail market mirrored this trend, showing inactivity despite the lower dollar price.
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Visits to several Forex bureaux on Wednesday revealed a scarcity of dollars for sale, even though the rate had dropped. Similarly, there was demand pressure on the dollar on the interbank market, but the rate continued to fall.
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Market observers attribute the drop in the dollar price over the last two trading days to the BoG’s stringent measures. However, they caution that the current cedi appreciation might be unsustainable due to insufficient dollar supply to meet existing demand.
Two weeks ago, Central Bank Governor Dr. Ernest Addison announced a series of measures to curb the cedi’s depreciation, which had lost over 20% of its value on the retail market and more than 14.6% on the interbank market. These measures include collaborating with the Financial Intelligence Centre to crack down on illegal operators, increasing monitoring of Forex bureaux to ensure regulatory compliance, and establishing a task force to oversee adherence among Forex bureaux. Additionally, forex bureaux have been prohibited from publishing their rates on social media and outside their premises.
