Cedi Depreciation: Traders Predict Further Depreciation Till End of January 2023

Cedi Depreciation: Traders Predict Further Depreciation Till End of January 2023

  • Ghanaians have been advised to brace up for the worse effects of the cedi depreciation because the depreciation will persist until January ending
  • The Ghana Union of Traders Association (GUTA) has said the current depreciation has been caused by repatriation of huge amounts of dollars by expatriates
  • Cedi depreciation worsens inflation and makes the standard of living unbearable, especially for the poor

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Traders in Ghana have predicted that the depreciation of the cedi over the past three weeks will continue until the end of January 2023.

The mother body of all traders in the country, the Ghana Union of Traders Associations (GUTA), said the current depreciation has been caused by Chinese expatriates leaving Ghana with huge amounts of dollars.

Joseph Obeng is president of GUTA
GUTA president Joseph Obeng says cedi depreciation won't slow any time soon. Source: UGC.
Source: Getty Images

GUTA president Dr Joseph Obeng told Joy News on Tuesday, January 17, 2023 that Ghana needs a permanent arrangement to shield the economy from the adverse effects of dollar repatriation.

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“Until we have a permanent solution to this repatriation and all that, for this particular month of January it will continue to see the depreciation of the cedi,” he told the Accra-based news outlet.

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Because most GUTA members sell imported products, depreciation of the local currency affects their business capitals and stifles their growth.

After a brief bout of appreciation last month, the cedi backslid to its old ways, dropping significantly against the US dollar and other trading currencies on Wednesday, January 18, 2023.

Per the Bank of Ghana-backed exchange rate, $1 is trading at GH¢10.30, although some forex bureaus as quoting as high as GH¢13 as selling price for a dollar. In October last year, the cedi fell so much some forex bureaus sold $1 for GH¢15.

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Meanwhile, the central bank has said it is doing everything to keep the cedi stable against the major trading currencies.

Local Currency Continues Poor Performance Against US Dollar And Other Foreign Currencies

Meanwhile, YEN.com.gh has reported in a separate story that the US dollar has begun trouncing the Ghana cedi as rates released by both the BoG and forex bureaus show the local currency is depreciating rapidly.

On January 16, 2023, $1 was selling for over GH¢13 at forex bureaus although the interbank rates quote slightly lower rates.

Due to the depreciation, fuel prices are expected to go up between 5% and 9% in the next pricing window, that is from January 16 to January 31.

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Source: YEN.com.gh

George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.

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