Cedi Depreciation: Price Of Cement Bag Hits GH¢85 As Fall Of Local Currency Bites Manufacturers

• The cedi's rapid depreciation is triggering massive inflation in essential items on the Ghanaian market
• The fall of the cedi has caused the price a 50kg cement bag to rise above GH¢80, a situation that could cause increases in rent and real estate
• The increase in the bag of cement represents a 10% rise of the essential building material just weeks

The depreciation of the cedi against the dollar has hiked the price of 50kg cement bag by up to 10% within weeks.

Reports monitored by YEN.com.gh shows that the price of the essential manufacturing product has shot up and was selling between GH¢77 to GH¢85.

The increase in the price of cement is expected to significantly drive up the cost of construction and in turn trigger increase in the price of real estate.

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This means the cost of rent will also definitely go up.

The increase in the price a bag of cement has been attributed to the rapid depreciation of the cedi to the dollar and other trading currencies.

Because some of the raw materials used in the production of cement are imported with dollars, Ghanaian manufacturers are having to use a lot of cedis to buy only a few dollars thereby eroding the capital.

To be able to stay in business, the manufacturers have been compelled to increase the price of a bag of cement to make up for the shocks caused by the cedi depreciation.

Finance Minister Begs Ghanaians Not To Panic As $1 Hovers Around GH¢15

Meanwhile, YEN.com.gh has reported in a separate story that the finance minister Ken Ofori-Atta has pleaded with Ghanaians not to panic as the cedi’s depreciation worsens.

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Speaking from Washington DC, the US capital, where had been meeting IMF over Ghana’s economic conundrum, Mr Ofori-Atta said the steep fall of the local currency is worrying.

The cedi has been depreciation steeply against the US dollar and other major trading currency on Thursday. The cedi started the day trading at almost GH¢13 to a dollar and ended at GH¢15 to $1 at forex bureaus.

Source: YEN.com.gh