The Cedi is Suffering Continuous Depreciation as $1 Nears Ghs15.00
The Ghana Cedi is suffering continuous depreciation as $1 nears Ghs15.00 on the open market. The Bank of Ghana’s interbank rates quoted daily have continued to be far below the exchange rates quoted by forex bureaus.
The exchange rates are not favouring the cedi in any way which makes business and individuals continue to lose value each day.
The Bank of Ghana needs to take efforts to stabilize the fluctuations within the FX market which are negatively impacting the local currency. Some stability needs to be attained before the festive season further worsens the local currency’s inability to remain stable.
On 10th November the selling rates on the open market were 1 USD ➔ ₵ 14.46, 1 GBP ➔ ₵ 16.50, and 1 EUR ➔ ₵ 14.51
One key area to look at is supply and demand for the three major currencies that seem not to be within the control of the BoG even as they continue to provide unrealistic low rates that do not help the market.
The cedi ended last week with a marginal appreciation, but the cedi has depreciated again to ¢14.20 to one dollar, which is the average quote by the forex bureaus. According to the Bank of Ghana, however, the local currency is selling at ¢13.014 on the interbank market. The cedi is also going for ¢15.60 and ¢13.60 to one pound and one euro respectively.
The Asantehene Osei Tutu II has waded into the conversation on the ailing economy, high prices, and the easy fall of the cedi against the major trading currency.
“I would like to make reference to the unsettling turbulence which has characterized Ghana’s foreign currency market, Since the beginning of the year, there has been an astronomical depreciation of the cedi against Ghana’s major foreign currencies, particularly the US Dollar.” The Asantehene stated.
The Asantehene furthered that, he was confident in the Bank of Ghana that it will do all it can to remedy the situation. He called on the BoG to work hard toward the stabilization of the foreign exchange market.
READ: Bank of Ghana Exchange Rates for Today: Are these rates realistic?
“I have no doubt that the Bank of Ghana is doing its best to remedy the situation, but the central bank is doing its best to remedy the situation, but I must urge the central bank to urgently take all the requisite steps within its competence to return the foreign market to stability, in order to bring predictability to Ghana’s export and import trade, as well as other international financial transactions”, he said.
The Cedi is Suffering Continuous Depreciation, BoG needs to show leadership as $1 nears Ghs15.00.