GOVERNMENT’S ANNOUNCEMENT of fresh dollars into the economy to arrest the unbridled appreciation of the United States dollar has succeeded in redeeming some value for the local currency against the green back.
The dollar was trading at GH¢5.60 a few weeks ago but within just a week of the announcement of Ghana’s ability to successfully raise $3 billion from international financial institutions through a three-tranche Eurobond which attracted more bids than the country asked for, the dollar has ceded some 80 pesewas to the local currency.
On Tuesday, March 19, 2019, at the close of a roadshow in London, the subscription for the 2019 sovereign bond had swelled, resulting in orders totaling $21 billion.
DGN Online checks on the forex market on Monday, March 25, 2019, showed that a dollar was selling at GH¢4.70. The dollar is expected to further lose value against the cedi when the $3 billion is injected into the economy.
At the Global Exchange Forex Bureau at Mallam, Accra, $100 exchanged for GH¢470.
On 2nd January, the cedi sold at GH¢4.83 to a dollar, losing value without fail to end January at GHC 4.95. The loss continued through February beginning at GHC 4.95 to a dollar and hitting GH¢5 by February 9th.
Ending February at GH¢5.16 to a dollar on the interbank foreign exchange market, it further depreciated by 8 pesewas to reach GH¢5.24 by March 12 and continued to maintain that position for close to a fortnight before taking an ascent to sell at GH¢5.16 on March 22, 2019.
Analysts have meanwhile indicated that borrowing to support the local currency was not sustainable.
They have appealed for the introduction of long term measures to develop the structural needs of the economy and help check the depreciation.
Source: Daily Graphic
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With me I think the long and short is to peg $1 to Ghc3 for duty calculation purposes for a period of one year while they search for the long term solution. This will stabilize prices of goods and services and curb down the rate of inflation. One other thing is for the government to try and discourage the black market so that traders can trade their dollars with the banks direct.
by how much? you people make too much noise.
There is an obvious manipulation in the system. Definitely the govt is definitely putting measures in place for long term stability of the economy. Yes short term fixes may be necessary for the time being in terms of borrowing to stabilize the Ghana cedi but this is not solution. Most banks are needed to assist the economy but they dorm cartels to push the rates up to maximize their profit. They then claim its supply and demand. The BOG must regulate the rates and must bring in punitive actions on banks who exploit the situation rather than ease the pressure on currency. Let's give the govt the chance to work and see the difference in time
This is not the whole story. I was at Prudential Bank yesterday. The rate for selling was $1.00 to GHC 4.65, but when you want to buy dollars the rate is GHC 5.30 per $1.00 at the same bank. There is obvious manipulation somewhere.
This was an interim measure! Nana Addo/ NPP has LONG & SUSTAINED measure. The PFJ, 1D1F, 1V1D & the Planting for Export are all LONG TIME MEASURES of the VISIONARY LEADER for Ghana! NEVER vote for CREATE, LOOT & SHARE!