- The cedi has depreciated by 11% between January 2018 and the same period this year 
- One of the major ramifications of the cedi depreciation is it affects the cost of doing business, especially for importers
- It also impacts on GDP growth, inflation and servicing public debt
A co-chairman of the Abossey Okai Spare Parts Dealers Association says the fall of the cedi has forced him to drastically reduce the number of containers of car spare parts he used to import.
Siaw Ampadu said he used to import 10 to 15 containers about seven years ago, but now imports just one container due to the fast depreciation of the cedi.
“I don’t think how business is going on this time, you can import more than three, four containers a year. Previously I used to import – about a whole year – ten or fifteen containers, but now, [I import] one or two containers [and] I’m okay because I don’t have the capacity,” he told Accra-based Class FM.
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The Ghana cedi has been depreciating at a fast rate since the last quarter of 2018 and continued into the first quarter of 2019.
The cedi went past the ¢5 mark to a dollar after hitting a record low in terms of depreciation.
As of March 13, 2019, the cedi had declined to 5.55 per dollar, which was its weakest level since Bloomberg started keeping the records in 1994.
“No businessman would like to hear that the cedi is depreciating, all that we want to hear is that the cedi is appreciating. This time, I think we’ve seen that the cedi is getting its strength and we’re all happy about the situation now but we want the cedi to increase and do better for us,” Mr. Ampadu added.
He appealed to the government to take major steps to ensure that the cedi appreciates against the dollar and other major currencies.
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“The government should put measures in place to make sure the cedi is getting its strength. All over the world, they have measures to check their currency, but here in Ghana, you cannot understand the digits.
“…they should do something about this and they should put measures in place,” Mr. Ampadu appealed.
Meanwhile, the local currency has been appreciating since March 18, 2019 and went up marginally to 5.049 per dollar on March 24, 2019.
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This was after the government injected a $750 million Standard Bank bridge facility and also launched a $3 billion Eurobond to stop the cedi from depreciating further.
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