Over the last week, the Ghana Cedi seemed to have gained value as the Exchange Rate of the cedi appreciated and was sold below GHS13.00 for a $1.
However, on the first day if business this week, the exchange rate for the cedi has depreciates marginally and has crossed the GHS13.00 to a dollar mark again. As the festive season draws near and demand for dollars shoots up for import purposes, the cedi may continue to loose marginal.
Today’s Exchange Rate as Cedi depreciates marginally
Today’s Exchange Rate released by Cedi Rates indicate the cedi is selling at the following rates per the three major trading currencies on the open market.
Mon, 12 Dec 2022 Exchange Rate (Selling)
1 USD ➔ ₵ 13.03
1 BP ➔ ₵ 15.98
1 EUR ➔ ₵ 13.74
In addition to the above, the bitcoin rate is as follows ₿ 1 BTC ➔ ₵ 220,703
However, the interbank rates released by the Bank of Ghana for Monday 12th December 2022 which were based on rates at close of business on Friday, 9th December are as follows
Mon, 12 Dec 2022 Exchange Rate (Selling) released by the Bank of Ghana
1 USD ➔ ₵ 12.56
1 BP ➔ ₵ 15.40
1 EUR ➔ ₵ 13.23
The prevailing market Exchange Rates resulting from demand and supply factors are higher than the rates from the Bank of Ghana.
In all, the Cedi has been appreciating steadily against the dollar in the last 72 hours. Let us continue to work together as a nation to find innovative solutions to make our economy stronger and more resilient.
One of the major reasons accounting for the appreciation of the cedi or the dollar weakening is due to concerns from Wednesday, December 7th, 2022 that rising interest rates in the US could push the US economy into recession while an easing of China’s Covid restrictions further boosted the yuan.
READ:Ghana’s Self-inflicted Monumental Economic Crisis – Togbe Afede XIV
The government of Ghana expects that cedi to further appreciate after it had gone up to nearly 16GHS per $ in the open market before beginning to appreciate.
The appreciation of the Ghana cedi decreases the real price of imported intermediate goods and, hence, increases the demand for these goods.
The cedi appreciation can help reduce inflation and wear off economy overheating. This can be attributed to imports becoming significantly cheaper and exports rising. Domestic products may become more costly due to this appreciation, causing imported goods to become cheaper on the international market.
This is where Ghana wants to be after experiencing higher prices of goods and services coupled with rising exchange rates and high food prices. The Ghanaian economy is expected to bounce back marginally if the current marginal stability is maintained over a period.