Projected fall in prices of gold, cocoa to adversely affect cedi's value

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The Ghana cedi is set to come under serious pressure again over the projected fall in prices of gold and cocoa on the international market.

The World Bank in a recent report noted that Ghana's earnings from the exports of gold and cocoa will drop substantially in the days ahead.

The bank based its predictions on the huge fall in prices of the two commodities in the coming months.

The country over the years has depended on hard currencies earned from exports from gold and cocoa to finance imports and shore up the local currency's value.

Dr. Joe Abbey, an Economist, states that with less earnings from exports and an less controlled imports, "the Bank of Ghana would have to draw down on its holding of foreign exchange to meet the gaps".

Despite its stability, the Ghana cedi is currently the second most depreciated currency in Africa, according to the latest Ecobank report on the performance of currencies in Africa.

The report puts the cedi's rate of depreciation at 14.5 percent, second to the Lesotho's Loti of 19.3.

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