Cedi hits ¢12.10 to a dollar

Within a week, the Ghana cedi broke beyond the 12-mark, trading at 12.10 at the majority of forex bureaus or the retail market.

 

According to a Joy Business visit to a few currency bureaus, the majority of the owners are selling the dollar for more than 12. They assert that there are much fewer dollars available. Once more, the cedi is falling behind the pound and the euro swiftly. One euro is currently selling for 11.10 while a pound currently costs around 12.70.

The value of the local currency relative to the dollar has dropped by more than 6% in just one week (October 10–October 14). This indicates that the cedi has lost about 46% of its value so far this year.

 

By this rate of depreciation, firms’ working capital, notably that of manufacturers who rely on imported raw materials, has decreased by nearly 46% since January 1, 2022.

 

Joy Business is aware that certain banks are even having trouble getting money to carry out transfer transactions for their customers.

When the rapid devaluation of the cedi will stop is currently unknown. However, the projected first tranche of the $1.13 billion Cocoa Syndicated Loan could aid in the interim by reducing the rate of the cedi’s free decline.

 

Managers of the economy will feel a great deal of comfort when the continuing negotiations between the government and the International Monetary Fund for an economic program are finally concluded.

 

This would not only give the government’s policies credibility, but it will also reassure investors about long-term macroeconomic stability.

As pressure to devalue the cedi mounts, 1 dollar represents 11.62 cedis. Yesterday, October 13, 2022, the cedi traded for 11.62 to the US dollar on the FX market as devaluation pressures persisted unabatedly.

Leave a Reply

Your email address will not be published. Required fields are marked *