Cedi’s losing streak continues; one dollar equals GH¢16.00

The Ghana cedi weakened by 1.57% against the US dollar last week despite the Bank of Ghana injecting $137.35 million into the market, bringing its year-to-date depreciation to 2.66%. This marks the second consecutive week of losses after a period of relative stability.

Investor concerns over the government's ability to meet fiscal targets, following the announced scrapping of key taxes in the 2025 budget, contributed to the cedi’s decline. The currency also lost 3.45% against the pound and 5.51% versus the euro.

Additionally, Ghana’s US dollar-denominated bonds fell by 1.5 cents after the budget presentation, signaling market skepticism over the revenue outlook. While the government plans spending cuts to compensate for the lost revenue, analysts warn of potential fiscal slippage, which could further pressure the cedi in the near term.