Cedi loses significantly against major currencies

The third quarter of the year has begun with no end in sight to the falling value of the cedi.

The cedi has depreciated against all its trading partners recording the heaviest lost against the euro. Against the euro, the cedi has depreciated by about 7.4 percent while it dropped by 6.47 percent against the British pound and about 1.25 percent against the US dollar.

This is far cry from the same period last year where the cedi appreciated against the major currencies except the dollar. By the end of June 2005, the cedi had appreciated by 12.65 percent against the Euro, gained 6.47 percent against the pound and depreciated by only by 0.28 percent against the dollar.

Traditionally, the value of the cedi falls during festive occasions particularly towards the yuletide where there is high demand for foreign currencies to import goods. However this year, the cedi has been losing value even before the last quarter.

Experts, Joy business report has been speaking to suggest, that the cedi has been depreciating largely because of the performance of the dollar to which is the cedi is pegged.

The dollar has been depreciating against the Euro and the Pound on the international market as a result of the crude oil crisis and other international decisions which affect the interest of the United States.