The Managing Director of Ecobank, Sam Ashitey-Adjei, has suggested currency hedging to reduce the impact of the declining cedi on big businesses.
He told Joy Business after the launch of its SME Club that options such as currency hedging, along with similar risk management strategies can help lessen the burden most businesses are currently carrying.
He however noted that the effectiveness of hedging will depend on big businesses' ability to get hedging counterparts.
"You will always have to be in the middle. You do a forward for a client and you have to do a reverse forward with another counterpart to hedge yourselves. We only do that when we have counterparties", he said.
He noted that the challenge with hedging has to do the nature of Ghana's market, which he acknowledges is not deep enough to support currency hedging.
The local currency from January to date has depreciated against the dollar by a little over 12 per cent.
The cedi-dollar exchange rate currently stands at GH¢3, 77 pesewas.
Latest Stories
-
I haven’t been treated well by the NPP but I remain loyal – Former NPP MP
24 mins -
Black Sherif should pray for Shatta Wale and Stonebwoy to remain at loggerheads – Ajagurajah
31 mins -
Blue Ivy Carter joins mum Beyoncé in Lion King prequel
39 mins -
Stonebwoy, other African acts’ music restored after TikTok, Universal Music resolve dispute
1 hour -
Dumsor hasn’t ended – IES debunks Akufo-Addo’s claim as citizens complain of more outages
1 hour -
Bawumia praises church’s invaluable role in Ghana’s development
1 hour -
Bawumia: ‘I am confident God can use me for Ghana’s good’
1 hour -
‘Man stuffing ballot box, not our staff and incident not related to Ejisu by-election’ – EC
1 hour -
Agogo Presby Hospital holds annual performance review meeting
1 hour -
Fifth body found after Baltimore bridge collapse
2 hours -
Use brand management skills as tool for self-employment – Students told
2 hours -
EOCO could have done more investigations into Cecilia Dapaah’s case – GII
2 hours -
MTN FA Cup: Dreams FC to switch focus to title defence after CAF Confederation Cup elimination
2 hours -
New photo marks Princess Charlotte ninth birthday
2 hours -
Dafeamekpor files appeal against dismissal of request to compel Akufo-Addo to accept anti-LGBTQ bill
2 hours