Cedi Depreciation: $1 Approaches GH¢13 As Fall Of Local Currency Against Dollar Worsens

Cedi Depreciation: $1 Approaches GH¢13 As Fall Of Local Currency Against Dollar Worsens

  • The fall of Ghana's local currency is worsening and is now selling for almost GH¢13 for $1 at most forex bureaus
  • The cedi's fall has been attributed to over importation of foreign goods as this puts pressure on the cedi
  • Forex bureau operators have also said there are not enough dollars in the system and this has created high demand that has in turn hiked the value of the American greenback

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The fall of the Ghana cedi is worsening as forex markets sell $1 for almost GH¢13 as at Thursday, October 19, 2022.

Forex bureaus in Accra are selling $1 for between GH¢12.50 and GH¢12.95, representing over 6% depreciation within three days, from October 17 to October 19, 2022.

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According to a Joy Business report, a few forex bureaus are already “selling the cedi at approximately ¢13 to the American ‘greenback’.”

Now $100 is almost GHS1,300 as the cedi fall worsens. Source: UGC.
Source: UGC

It is not only the dollar the cedi is depreciating to. The local currency is falling significantly against the Pound Sterling and Euro too.

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One pound is going for GH¢13.70 at most forex bureaus and one euro is selling for GH¢12.

Forex operators say there is no end in sight for the cedi's depreciation, especially against the dollar. They explain that the amount of dollars in circulation is inadequate and this has triggered a high demand, thereby raising the value of the greenback.

Also, Dr George Domfe, a Development Economist and a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) said Ghana’s currency is in for a long bout of depreciation because imported goods are too much on the Ghanaian market.

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He told YEN.com.gh that the cedi fall reflects fundamental problems in Ghana’s economy that needs to be resolved as soon as possible.

“I don’t see an end in sight for this cedi depreciation. We cannot fight the depreciation if our taste for imported goods is too high. This is the time to look inward and develop our local industries and local production,” he told said.

Cedi Becomes Worst Performing Currency In The World Against Dollar

Meanwhile, YEN.com.gh reported in a previous story that the Ghana cedi has been ranked as the worse among 148 currencies globally.

Bloomberg has declared the cedi as the worst-performing currency against the dollar.

According to the global media organisation, the Ghana cedi switched places with the Sri Lankan rupee after losing 3.3% of its value to the US dollar on Monday, October 17, 2022.

The cedi was trading at GH¢11.2750 to the US$1 on the interbank market as of October 17.

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Source: YEN.com.gh

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