Ghana Cedi: Local Currency Backsliding To Old Ways As It Records Steady Fall Against Dollar
- It is not looking too good for the cedi this year as it has been depreciating constantly against the dollar since the first day of 2023
- Bank of Ghana's interbank rate shows that the local currency was trading against the dollar at a selling price of GH¢9.0092 for $1 and at a buying price of GH¢9.0002 to $1
- Forex bureaus in Accra are quoting higher selling and buying prices for the dollar but the steady depreciation has also prompted fears that the old days of rapid depreciation is upon Ghanaians again
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Over the last couple of weeks, the cedi has been falling steadily against the dollar and other major trading currencies.
On the interbank market as at Tuesday, January 10, 2023, the cedi was trading against the dollar at a selling price of GH¢9.0092 for $1 and at a buying price GH¢9.0002 to $1.
However, the rates are much higher at forex bureaus in Accra.
The Association of Forex Bureaux in Ghana has quoted a buying of price of GH¢10 to $1 and a selling price of GH¢12 to one unit of the American greenback.
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Meanwhile, some forex bureaus in Accra have quoted GH¢11.30 as the buying price of $1 and GH¢12.20 as the selling price.
Just last Friday, the central bank-approved interbank rates quoted a buying price of GH¢8.6067 for the dollar and a selling price of 8.6153 for same.
Also, not long ago, precisely on January 3, 2023 the cedi dropped marginally on the interbank market, prompting fears that the local currency has backslid to its old ways of rapid depreciation.
While the depreciation has not been very significant it has been constant and the cumulative depreciation has been significant.
Many are concerned because the cedi had shown impressive appreciation against the dollar after a terrible run for close to two months last year.
The cedi's strong showing against the dollar late November and all of December last year resulted in a reduction of fuel prices at different times, with expectations that inflation will also fall as a result.
But these positive expectations seem uncertain.
Generally, the cedi has also depreciated against the other trading currencies as of January 10, 2023.
Gold-for-Oil Barter Fails To Produce Results
Last year, vice president Dr Mahamudu Bawumia announced plans by Ghana to buy imported petroleum products like diesel and petrol with gold to decrease the demand for forex that causes the cedi to depreciate.
The move has been criticised as untenable by some experts in the petroleum and finance sectors.
For instance, COPEC-GH has said the best way to reduce pressure on Ghana's forex reserves is to bring TOR, the local refinery, back online.
Cedi Depreciates Marginally Against Dollar In Early January 2023
Meanwhile, YEN.com.gh reported previously that Ghana's local currency started 2023 on a slightly unimpressive note as it fell against the U.S dollar marginally on both the interbank market and at forex bureaus.
Figures monitored by YEN.com.gh on Tuesday, January 3, 2023, show that the cedi has depreciated by 20 pesewas to the dollar in about 24 hours on the interbank market.
Also, the Bank of Ghana-backed interbank rate for January 3 showed that the Ghana Cedi was trading against the dollar at a buying price of GH¢8.5717 and a selling price of GH¢8.5803.
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