The Ghanaian Cedi continues to show remarkable strength against major currencies, especially the US Dollar, the latest report released by Bank of Ghana indicates.
According to the latest Monetary Policy Report by the Bank of Ghana, the Cedi has shown a cumulative year-to-date depreciation of 1.7% for 2021.
With this impressive depreciation rate, the Central Bank, and indeed analysts project that the Cedi is likely to end the year 2021 with the lowest rate of depreciation since 1992 and in the 4th Republic.
The Cedi has shown stability in the past few years, bouncing back from its highest annual depreciation rate of 31% in 2014.
While the Cedi depreciated at 12.9% in 2019, it came down to 3.9% in 2020, and with three months to end 2021, the 1.7% is the lowest depreciation in nearly three decades.
The Monetary Policy Report from the Bank of Ghana also indicated improved performances in some key sectors of the economy while other sectors are still yet to recover from the dampening effects of the COVID-19.
The report showed a stronger pick up in annual GDP growth to 3.9% in the second quarter of 2021, from the 3.1% recorded in the first quarter, and a 5.7% contraction in the same period of 2020.
The report also indicated a positive outlook in the banking sector, which remains stronger and well-capitalized, with stronger growth in total assets, investments and deposits. Total assets increased by 16.7% as at end-August. Profitability levels of the banks remain high, with profit growth driven by increased income growth.