The Ghana Cedi is currently trading against the dollar at a buying price of 8.0161 and a selling price of 8.0241 on the Bank of Ghana’s Interbank FX rates, as opposed to the previous trading at a buying price of 8.0011 and a selling price of 8.0091.
The exchange rate for buying and selling the dollar in Accra is 9.07 for buying and 9.25 for selling.
The Cedi is currently trading at a purchasing price of 9.6890 and a selling price of 9.6995 when compared to its previous trading at a buying price of 9.3287 and a selling price of 9.3395 when measured against the British pound.
The exchange rate for buying and selling the pound sterling at a forex bureau in Accra is 10.70 and 10.99 respectively.
In contrast to earlier trading when the Euro was traded at a buying price of 7.7901 and a selling price of 7.7992, the Euro is currently trading at a buying price of 8.1944 and a selling price of 8.2026.
Euro is being purchased at a rate of 8.97 and being sold at a rate of 9.25 at a forex bureau in Accra.
What This Means for Ghana
Since the beginning of the year, the Ghanaian cedi has fallen by a startling 47.10% against the US dollar.
After the Sri Lankan rupee, the cedi has had the second-worst performance in the world since January due to its rapid depreciation against the US dollar.
Additionally, when the cedi’s value decreased and the price of imported goods like cooking oil and gasoline increased, Ghana’s inflation increased more quickly than anticipated in July.
To arrest the devaluation of the Ghanaian cedi and the rise in inflation, the central bank unleashed the most dramatic tightening of monetary policy, raising the interest rate from 17% to 19%.
Interestingly, Ghana’s headline inflation rate rose from 29.8% in June 2022 to 31.7% in July 2022. The purchasing power of Ghanaians has continued to decrease despite efforts by the central bank to control the rising inflation.
Nevertheless, as Ghana’s harvest season approaches and the price of wheat and other commodities decreases globally, price pressures are anticipated to start easing. If the cedi keeps falling in value, however, the central bank might be convinced to increase borrowing costs even further the next month.
Personally, I think that more drastic measures must be put in place to help in the depreciation of our cedis. There are many foreigners doing retail business in Ghana which our constitution is against. This is a concern because most of these foreigners sell inferior goods and a chank of them also send away the dollars acquired to their country of origin. As more dollars leave the country with less coming in our Cedi will depreciate. Also, the importers that serve as the middlemen for foreigners to load their inferior goods must be heavily tasked to the extent that they will stop. We citizens also need to consume more of our local foods as more imports depreciate our currency. It is not up to only the government to fight this war; citizens must also play their part.
Indeed, this is going to work if only it is a collective effort. But Adam I was just thinking, is it possible for the government to charge local businesses to produce goods to a certain target every month while at the same time, the government putting a hold on some foreign goods so that the Ghanaian will have no choice than to consume the locally-made goods?
This, of course, will have to come with funding from the government.Do you think such a thing is possible or would that punch a hole right in the capitalist structure of our market?
Now the cedi has broken the 10…hmm
Cedi has finally broken the 10 😃
Impressive work
Nice write up 👍