With this spectacular depreciation charge, the Central Financial institution, and certainly analysts, mission that the Cedi is more likely to finish the yr 2021 with the bottom charge of depreciation since 1992 and within the 4th Republic.
The Cedi has proven stability previously few years, bouncing again from its highest annual depreciation charge of 31% in 2014.
Whereas the Cedi depreciated at 12.9% in 2019, it got here down to three.9% in 2020, and with three months to finish 2021, the 1.7% is the bottom depreciation in practically three a long time.
The Financial Coverage Report from the Financial institution of Ghana additionally indicated improved performances in some key sectors of the economic system whereas different sectors are nonetheless but to get well from the dampening results of the COVID-19.
The report confirmed a stronger choose up in annual GDP development to three.9% within the second quarter of 2021, from the three.1% recorded within the first quarter, and a 5.7% contraction in the identical interval of 2020.
The report additionally indicated a optimistic outlook within the banking sector, which stays stronger and well-capitalized, with stronger development in complete belongings, investments and deposits. Whole belongings elevated by 16.7% as at end-August. Profitability ranges of the banks stay excessive, with revenue development pushed by elevated earnings development.
