Prime News Ghana

Cedi now GH¢4.98 against US dollar

By Mutala Yakubu
Cedi now GH¢4.98 against US dollar

The Ghana cedi is just two pesewas away from hitting the GH¢5 mark per a dollar.

It closed Monday trading at around GH¢4.98 against the US dollar. This is basically the main quotes being put out by some of the major commercial banks in the currency business in the country.

What is causing this?

Many reasons have been put forward depending on the currency dealer or treasurer that you engage with from any of the big banks in the forex business.  

Some of them have told JoyBusiness that the “spike” is due to pick up in the dollar by businesses seeking dollars to finance their imports.

It has also been argued that some offshore investors have reduced their interest in “purchasing” the country’s bonds. These, according to some analysts, have contributed to the current pressure on the Ghana cedi.  

Cedi’s Movements

The local currency, which had been fairly stable late October to early November this year, started depreciating sharply again from the middle of last month.
This was after the Bank of Ghana (BoG) intervened with dollars to help hold the cedi against the “Greenback”.  

Some currency dealers have argued that the challenge with the cedi is more of supply issue, meaning that if there is “enough” supply, the situation could be under control.

Bank of Ghana data shows that the cedi has depreciated against the dollar by some 7.82 per cent so far.    

Read also: BoG: Ghana's debt hits 170.8 billion cedis

Source: myjoyonline

Ghana News: Latest news in Ghana