The Cedi depreciated by 7.81 percent against the US dollar in the year to October 2018 on the interbank market compared with 4.03 percent depreciation during the same period in 2017.
Cumulatively, the cedi depreciated by 2.26 percent against the Euro and 2.37 percent against the Pound Sterling.
A monetary policy committee report for November 2018, which made these known, said these compare favourably to the 12.90 percent and 10.38 percent depreciation against the Euro and Pound Sterling respectively during the same period in 2017.
Comparatively, it said the cedi performed better from January to mid-June in 2018 than the same time in 2016 and 2017.
But its performance deteriorated in the third quarter driven by external factors.
“We expect the cedi’s relative stability to continue on the back of the second tranche of the cocoa loan inflow, stabilizing global conditions, and strong macro fundamentals.
However, risks such as the adverse effects of escalating trade tensions, slowing global economy, and sound implementation of policies in the near term would require close monitoring.
“Building on the recent gains on the performance of the cedi may therefore call for continued real policy tightness, sustained inflows and continued mop up of excess liquidity to dampen foreign exchange demand pressures.”
On the domestic currency market, the cedi came under pressure between April and September mainly from external developments.
However, the pressure has eased significantly reflecting stabilizing global conditions, improved inflows, stronger macro fundamentals and observed decline in forex demand pressures.