- The Ghana cedi has depreciated massively against the US dollars
- The cedi has hit one of its highest falls so far for this year reaching ¢4.85 to one United States dollar
The cedi has experienced its lowest depreciation since Nana Akufo-Addo came to office as president.
On Tuesday, the local currency hit a record low for the year after reaching ¢4.85 to one United States dollar.
The fast depreciation of the cedi has raised concerns among business owners in the country, who have demanded immediate action from government to stabilize the currency.
Among the worst hit are owners of some forex bureaus and persons who are into the import of goods.
This is because most of these businesses will now have to issue more cedis for the dollar and other major trading currencies.
Banks in the country have also been forced to exchange one dollar for ¢4.82 and ¢4.85, which is a loss of ¢0.07 in value.
“When the cedi depreciates like this people decide to hold onto their dollars so business slows down but when the cedi appreciates people find no reason to continue holding their dollars so they let go,” a forex bureau owner said, as quoted by Myjoyonline.com.
“People are saying there is nothing going on in town so the dollar is scarce. Although the demand for the dollar we don’t have any to sell to the customers and the banks also don’t supply it to us.”
The depreciation of the cedi gives a contrary signal to claims by Vice President Dr. Mahamudu Bawumia, who said last April that the local currency has been stabilized.
At the time, Dr. Bawumia’s response was that government has “arrested the cedi from running” and that it has brought some relief to investors and business owners.
However, the cedi has been weakening since the start of May, but has now reached a record low of ¢4.85.
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