Ghana’s economy has been dealt another blow as the cedi continues its downward spiral against the US dollar.
According to the latest rates from the Bank of Ghana (BoG), one US dollar is now equivalent to 15.5422 Ghana cedis for buying and 15.5578 for selling.
This development has raised concerns among economists and financial experts, who warn that the cedi’s continuous free fall could have far-reaching implications for the country’s economy.
The cedi’s decline has been a persistent problem for Ghana, with the currency losing significant value against the dollar over the past year.
The situation has been exacerbated by a combination of factors, including a high trade deficit, rising inflation, and a decline in foreign investment.
The recent unilateral reduction in treasury bills interest rates by the finance minister is a major pointer to the free fall of the national currency.
The government has attempted to stabilize the currency through various measures, including increasing interest rates and imposing controls on foreign exchange transactions.
However, these efforts have had limited success, and the cedi continues to slide.
The implications of the cedi’s decline are far-reaching. For one, it makes imports more expensive, which can drive up inflation and reduce the purchasing power of Ghanaian consumers.
It also makes it more difficult for Ghanaian businesses to compete in the global market, as they have to contend with a weaker currency.
Furthermore, the cedi’s decline can reduce investor confidence in the Ghanaian economy, which can lead to a decline in foreign investment and a slowdown in economic growth.
In response to the cedi’s decline, President John Dramani Mahama has charged the Finance Minister, Cassiel Ato Forson, to stabilize the currency and bring down inflation.
The President emphasized the need for the government to take bold measures to address the economic challenges facing the country.
“Ghanaians expect you to reduce inflation, make life more comfortable,” the President said.
“They expect you to bring the national public debt to sustainable levels, they are looking to you to stabilize our currency and to bring down inflation.”
The Bank of Ghana has also announced measures to stabilize the currency, including the implementation of a new foreign exchange law and the introduction of targeted market operations to eliminate leakages of forex.
The bank’s new Governor, Dr. Johnson Asiama, has emphasized the need for a stable foreign exchange market to support economic activity.
“The days of currency speculation and exchange rate instability must come to an end, and we are poised to ensure this happens,” he said.
-BY Daniel Bampoe
