Dollar/Cedi Makes Gargantuan Rise To 8.50
The Ghana cedi is gargantuanly recording a huge rise against the US dollar without any action and measures by the Bank of Ghana.
This means that the cost of operations of businesses, and manufacturing, will go up, and finger increases in the prices of some goods on the market which brings about inflation.
According to some forex bureaus and commercial banks indicate that a dollar is being sold at a rate of GH¢8.50
Some forex bureaus and banks are buying a dollar between GH¢8.10 while selling one dollar for GH¢8.50.
The situation is also similar to that of the British pound and euro.
The Centre Bank of Ghana wants to supply enough forex to meet the demand of the dollar as it appears the current forex auction strategy is not meeting the market demand for forex.
“This view of inadequate supply of forex is gleaned from the wide disparity that exists between Bank of Ghana’s forex quote and the interbank quotes. The similar disparities in quotes among banks at the retail level also indicate the inadequate supply of forex on the market,” they said.
Moreover, the local currency has come under intense pressure and is being classified among the 15 top-performing currencies in Africa as one of the worst.
The Ghana cedi has been ranked as the second worst-performing currency.
The local currency is leading to depreciation compared to the US dollar.
The depreciation has been attributed to upside risks to the economy including high debt and interest payments, inadequate revenue, and rising expenditure.