Audio By Carbonatix
The fast depreciation of the Ghana cedi continues with no end in sight as the local currency nears ¢13 to a dollar.
This is more than 6% depreciation in only three days of the week (October 17-19).
It may hit ¢13 by the close of the day, based on how trading is going in the retail market.
According to the rate from the forex bureaus, most of the operators are selling the local currency between ¢12.50 and ¢12.95.
Few are, however, selling the cedi at approximately ¢13 to the American ‘greenback’.
Again, some banks are struggling to get the dollar to undertake transfer and trade transcations.
The free fall of the cedi has already triggered protests by some traders who claim their cost of doing business has been surging week-on-week.
Also, the cedi lost more ground against the pound and the euro. It is thus going for ¢13.70 to the pound and ¢12 to the euro.
Some forex operators who spoke to Joy Business on condition of anonymity said they do not know when the rate of depreciation of the cedi will slow down.
To them, the amount of dollars in circulation is inadequate, fuelling the growing demand for the dollars.
Director of Research at the Institute of Economic Affairs and a former member of the Monetary Policy Committee, Dr John Kwakye in a tweet urged President Akufo-Addo to summon the Economic Management Team to address the current economic crisis and reassure Ghanaians.
Bloomberg ranks the cedi as the worst performing currency in the world, with a year-to-date depreciation of about 46%.
Cedi lost 9% value to dollar in only a week
The Ghana cedi lost 9.03% in value to the US dollar last week (October 10-October 14, 2022).
This came after the investment market reacted to the September 2022 inflation (37.2%).
The cedi also lost 5.15% and 6.87% in value to the pound and the euro respectively.
1 dollar now goes for ¢12.45
The cedi sold at ¢12.45 to the US dollar at the forex bureaus or the retail market on Monday October 17, 2022.
This translated into 2.8% depreciation of the local currency to the world’s most powerful currency, just in a single day. It has since been losing value rapidly to the dollar.
At the same time, the other major foreign currencies – the pound and the euro also appreciated in value to the cedi.
Ghana's Gross International Reserves declined to 2.9 months of import cover
The stock of Ghana's Gross International Reserves declined to $6.6 billion, equivalent to
2.9 months of import cover for goods and services in September 2022.
This is compared with the December 2021 position of $9.7 billion, equivalent to 4.3 months of import
cover.
Net International Reserves, which excluded encumbered assets and petroleum funds, was estimated at US$2.7 billion as at September 2022.
Latest Stories
-
Ghana’s new envoy to U.S. and diaspora lawyers to launch ‘Law Day’ for citizens
2 hours -
Mahamud Iddi wins TCL Electronics worth GH¢100,000 in EGL’s Akye3de3 Kese3 Promotion
3 hours -
Lands Minister, NAIMOS mourn fallen soldier killed during anti-galamsey operation in Obuasi
3 hours -
Ghana Impact Project donates $20k to restore mobility for children
4 hours -
JoyNews’ Kwaku Asante named Best Radio and TV Journalist in Parliamentary Reporting
5 hours -
Education Ministry updates EMIS indicators to strengthen ICT integration in schools
5 hours -
Interior Ministry declares Christmas, Boxing Day and New Year’s Day public holidays
5 hours -
President Mahama directs Finance Ministry to disburse $78m for completion of Takoradi–Agona-Nkwanta road
6 hours -
Interior Minister lauds NIA staff for dedication, pledges continued government support
6 hours -
First Atlantic Bank will run a “proper and decent business” to protect shareholder value – CEO
6 hours -
First Atlantic Bank targets African expansion as IPO strengthens capital, governance
6 hours -
First Atlantic Bank CEO attributes IPO and GSE listing decision to renewed confidence in Ghana’s economy
6 hours -
GPL 2025/26: Bechem United end All Blacks 6-game unbeaten run
7 hours -
Eggs fly off shelves as shoppers throng The Multimedia Group’s X’mas Egg Market on final day
8 hours -
Bankable energy: Why Africa’s downstream sector is the next global investment frontier
8 hours
