As the Ghanaian Cedi continues to depreciate against the American dollar for the past few weeks, an Economist has advised the Bank of Ghana to supply more dollars into the market to help stabilize the local currency.
Prof. Eric Osei-Assibey, a lecturer at the University of Ghana Economics Department, has asked the Central Bank to anticipate a high demand of the dollar on the market which will force the depreciation of the Cedi more.
“The Central Bank should anticipate that between now and February the demand is going to be high and is likely to outstrip supply and therefore the Central Bank should supply more dollar into the market so that it can actually moderate the banks over a period of time so that we don’t experience that rise in the currency around this time.”
The Cedi is now trading at ¢5 against the American dollar, which many believed has been influenced by the sudden demand for dollars by businesses in the country to finance their imports.
The Ghana Cedi which was trading at around ¢4.80 some two weeks ago has now hit the ¢4.90 range before it closed, ¢5.01.
The supply of the dollar might ease the pressure to allow the local currency to slightly appreciate and come back to the ¢4 range.
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