1 Dollar breaks ¢11 mark; forex bureaus sell a dollar for ¢11.30.
The Ghana cedi’s problems worsened, with the retail exchange rate standing at ¢11.30 to the dollar. It recently crossed the 11-to-1 threshold, which occurred on Saturday, October 8, 2022.
According to Joy Business’s inspections of a few forex offices in Accra, the nation’s capital, the majority of these offices sell dollars for between ¢11.10 and ¢11.35.
The euro and pound, which are both trading at very high levels against the cedi, may be argued to be comparable. The exchange rates for the cedi against the pound and the euro are ¢12.30 and ¢10.83 respectively.
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The majority of businesses have seen a big increase in their cost of doing business, and consumers have also seen a significant increase in their cost of living, suggesting that the situation, if prompt attention is not provided by managers of the economy, may be terrible for the economy.
Under the condition of anonymity, some of the operators of currency bureaus highlighted the Bank of Ghana’s recent action against them as being unsuccessful because the issue is more of an economic one.
Some analysts, however, are cautiously optimistic that the $1.13 billion cocoa syndicated loan, whose first tranche is anticipated to arrive by the end of this month, could assist enhance supplies and reduce the rate of the currency’s depreciation.
But if medium- to long-term remedies are not put in place, that is only a transient solution that will wear out quickly.
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At the ongoing Annual IMF/World Bank Spring Meetings, Finance Minister Ken Ofori-Atta met with Abebe Aemro Selassie, Director of the IMF’s Africa Department, on October 12, 2022 to press for a swift conclusion of talks with the IMF for an economic programme.
Many people believe that the IMF action is the only step that can help Ghana resolve its structural and macroeconomic problems.
Many market observers think it will strengthen the nation’s credibility and raise its credit rating, following downgrades by Moody’s and Fitch, even though it will be subject to onerous conditions.
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1 Dollar breaks ¢11 mark; forex bureaus sell a dollar for ¢11.3
Over the weekend, the dollar crossed the 11-mark after several days of decline. The cedi is also expected to face depreciation pressures in the near future, according to a research by Databank Research, as the foreign exchange market awaits information on the results of the IMF’s Debt Sustainability Analysis [DSA] study.
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“The local currency, the cedi, is likely to face depreciation pressures in the near future as the market waits for updates on the IMF’s DSA. The syndicated loan of $1.13 billion, which was agreed last week, is anticipated to increase FX supply and give the cedi some relief, according to Databank Research.
As portfolio outflows drained reserves, Ghana’s gross international reserves fell to 2.9 months of import cover. This is despite impressive earnings from exports of crude oil and gold.
