- The finance minister Ken Ofori-Atta has said there is no cause for alarm over the cedi's rapid fall against the dollar
- Speaking from Washington DC, the minister said while the cedi's depreciation is perplexing, things will soon get better
- He said the activities of importers in October has appreciated the dollar against the cedi, adding that an IMF deal next year should strengthen the local currency
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Ghana’s finance minister Ken Ofori-Atta has urged Ghanaians not to panic as the cedi’s depreciation worsened on Thursday, October 20, 2022.
Speaking from Washington DC, the US capital, where he is meeting the International Monetary Fund (IMF) over Ghana’s economic conundrum, Mr Ofori-Atta said the steep fall of the local currency is worrying.
The cedi has fallen sharply against the 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.
The unprecedent fall of the local currency in less than 16 hours has triggered a furore on social media with some predicting that the by December the cedi could sell at over GH¢20 to $1.
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“It is a bit perplexing,” Mr Ofori-Atta admitted.
“Typically we go to markets at the beginning of the year and get our two billion but we were not able to do that. We were able to then get $750 from AfriExim [Bank] in the summer, August or so, to stabilise it.
“Then we moved on traditionally as we do the annual syndicated loan of COCOBOD, and that came in very strongly. So, it is quite perplexing to see where it is going,” he told Asaase Radio.
He also attributed the cedi’s poor performance in October to the activities of importers.
“Typically, in October, people are importing for Christmas and maybe there is a rush for that. But my expectation is that once we also conclude the fund, that would lead to the Fund’s disbursement early next year,” he said.
He urged the business community and Ghanaians in general not panic over the situation.
“We really want people not to panic or be rushing for the dollar and be putting pressure on the cedi,” he admonished.
Skyrocketing inflation and the cedi's depreciation has raised the cost of living in Ghana, especially for the poor who spend a chunk of their incomes on food. Businesses are in distress as rising inflation erodes their capital.
The government is hoping to secure macroeconomic stability as it approaches the IMF for a bailout deal that is expected to come into force next year.
Cedi Falls Twice In One Day As $1 Sells for Almost GH¢14
YEN.com.gh reported previously that the cedi has fallen steeply on Thursday and was selling at GH¢14 to $1.
However, the situation has changed rapidly within hours as the cedi is reported to be trading at GH¢15 to $1 as at 20hrs on Thursday, October 20, 2022.
The cedi has been ranked as the worst currency in the world in terms of its performance against the US dollar.
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