- The cedi is not having it easy as it keeps falling against the dollar and other trading currencies
- On Thursday, October 20, 2022, the local currency fell twice first selling for between GH¢12.50 and GH¢12.95 and then later to GH¢13.75 to $1
- Economist Dr George Domfe has said the cedi’s woes should be a wake-up call to strengthen local production
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The cedi has slumped heavily within 24 hours against the dollar and is now selling at about GH¢13.75 to $1 at forex bureaus on Thursday, October 20, 2022.
A few hours earlier $1 sold for almost the forex bureaus in Accra were 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.
The dollar is not the only foreign currency that the cedi is falling against. It is also depreciating faster than the Pound Sterling and the Euro.
At late evening on October 20, 2022, the cedi is selling at about GH¢14.05 to the Pound and GH¢12.10 to the Euro.
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Cedi Fall Should Be A Wake Call
Economist Dr George Domfe has said the cedi’s woes should be a wake-up call to strengthen local production through industrialisation and modernisation of the agricultural sector.
He said the refrain since 1957 had been to borrow from the international market to shore up Ghana’s reserves and strengthen the cedi, but that must change.
“We have been so lazy as a people. This is why I kept on saying that there is urgent need to boost local production. Any policy that supports that agenda should be embraced by all us,” he said.
The Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the College of Humanities, University of Ghana outlined the following during an interview with YEN.com.gh to drum home his point that governments have not proactive about improving the economy for many year:
"Imagine a situation where 120,000 barrels of crude oil are refined at the enclave of Takoradi so the BDCs would go there to buy with cedi!! That alone would've saved the situation to some extent. At the moment, the BDCs use a whopping $400 million a month just to import refined oil products. Does this make sense to you?
"Countries are cashing in on the brand of Ghana cocoa while we sit here celebrating cocoa syndicated loans. We have had leaders who hardly think about tomorrow.
"It's a shame that Ghana continues to import rice!! Just look at our land.
"We are only interested in blame game. Yes, the global market is really hot. However, if there are strong shock absorbers, we wouldn't be here now!! Public sector transport system is almost dead after many years of independence. Guggisberg's railway system is almost completely collapsed."
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Cedi Becomes Worst Performing Currency In The World Against Dollar
YEN.com.gh has reported in an earlier story that the cedi has been ranked as the worse among 148 currencies globally.
According to a Bloomberg report, the cedi is the worst-performing currency against the dollar.
The global media organisation said 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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