SILENT KILLER: THE IMPACT OF THE CEDI DEPRECIATION ON THE GHANAIAN

The effects of the depreciating Cedi on the nation are so silent but deadly. While the government, business organizations, and citizens are still in discussions on how to control its depreciation, its effects have already been felt by every Ghanaian in one way or another.

Some have experienced it directly, others indirectly, and yet others have heard about it but are not directly affected by it. But what we can all agree on is that the cedi’s devaluation has led to increased prices of goods and services and reduced purchasing power or what we all call inflation.

Inflation in Ghana is defined as the sustained increase in the general price level of goods and services in an economy over some time. In other words, it is the rate at which the prices of goods and services increase. The main cause of inflation in Ghana is the depreciation of the cedi against major trading currencies.

Mostly, we import more than what we export. This has led to an increase in the cost of imported goods, which has in turn pushed up prices. The cedi has been depreciating steadily since 2020 and shows no signs of reversing course. This has had a ripple effect on all aspects of life in Ghana, from transportation to food costs.

The result is that inflation has been on the rise, eating into people’s incomes and purchasing power. There are also reports of increased poverty levels across the country. And this isn’t just affecting those in lower income brackets; even those who have historically enjoyed relative stability are feeling the pinch.

The current situation is not sustainable in the long term, and something needs to be done to bring inflation under control. If there isn’t any relief soon, then people are going to start suffering from malnutrition and disease. For many people who can barely afford food as it is, this could mean the difference between life and death. And if things get worse than that? No one knows what might happen next.

Most people in Ghana are not aware of how the current state of the cedi is affecting their lives. The depreciation of our currency has led to inflation, which has, in turn, increased the cost of living. This means that necessities like food and shelter are now more expensive than ever before.

 A family that used to be able to afford an average meal can now only afford a half portion due to this increased cost of living. People on fixed incomes such as pensioners have been hit especially hard by these increased costs, as they cannot adjust their income as prices go up. In addition, some retailers have started marking up prices for goods imported from other countries just because they know that with the depreciating cedi many Ghanaians will be forced to buy from them instead of looking elsewhere for better deals.

The depreciation of the cedi has had several negative effects on businesses and ordinary Ghanaians. For businesses, the cost of imported goods has gone up, which has forced them to either raise prices or cut costs. This has led to job losses and reduced profits. For ordinary Ghanaians, the cost of living has increased as prices for necessities like food and transportation have gone up.

The situation has been exacerbated by high-interest rates, which make it difficult for people to access credit. The depreciation of the cedi is also hurting Ghana’s foreign reserves, which could lead to even more economic problems in the future.

If you’re like most people, the current state of the cedi has been affecting you in more ways than one. The depreciation has made imported goods more expensive, and businesses have been struggling to keep up with the rising costs. This has led to an increase in the cost of living, and many people are finding it difficult to make ends meet. The situation is only getting worse, and it’s not clear how much longer Ghana can continue to tolerate the silent killer that is the depreciating cedi. The government needs to act quickly if they want to prevent a meltdown of our already fragile economy.

We cannot allow this to happen on their watch. We need them to take charge and provide us with answers to why this is happening and what we can do about it. All of us as citizens of Ghana need to speak out against the devaluation because things won’t get better without any effort from us at all. Let your voice be heard so we can reclaim our economy together!