{"id":1229209,"date":"2022-10-19T21:08:43","date_gmt":"2022-10-19T21:08:43","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/10\/19\/1-nears-%c2%a213-as-fast-depreciation-of-cedi-continues\/"},"modified":"2022-10-19T21:08:43","modified_gmt":"2022-10-19T21:08:43","slug":"1-nears-%c2%a213-as-fast-depreciation-of-cedi-continues","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/10\/19\/1-nears-%c2%a213-as-fast-depreciation-of-cedi-continues\/","title":{"rendered":"$1 nears \u00a213 as fast depreciation of cedi continues"},"content":{"rendered":"

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The fast depreciation of the Ghana cedi continues with no end in sight as the local currency nears \u00a213 to a dollar.<\/p>\n

This is more than 6% depreciation in only three days of the week (October 17-19).<\/p>\n

It may hit \u00a213 by the close of the day, based on how trading is going in the retail market.<\/p>\n

According to the rate from the forex bureaus, most of the operators are selling the local currency between \u00a212.50 and \u00a212.95.<\/p>\n

Few are, however, selling the cedi at approximately \u00a213 to the American \u2018greenback\u2019.<\/p>\n

Again, some banks are struggling to get the dollar to undertake transfer and trade transcations.<\/p>\n

The free fall of the cedi has already triggered protests by some traders who claim their cost of doing business has been surging week-on-week.<\/p>\n

Also, the cedi lost more ground against the pound and the euro. It is thus going for \u00a213.70 to the pound and \u00a212 to the euro.<\/p>\n

Some forex operators who spoke to Joy Business on condition of anonymity said they do not know when the rate of depreciation of the cedi will slow down.<\/p>\n

To them, the amount of dollars in circulation is inadequate, fuelling the growing demand for the dollars.<\/p>\n

Director of Research at the Institute of Economic Affairs and a former member of the Monetary Policy Committee, Dr John Kwakye in a tweet urged President Akufo-Addo to summon the Economic Management Team to address the current economic crisis and reassure Ghanaians.<\/p>\n

Bloomberg ranks the cedi as the worst performing currency in the world, with a year-to-date depreciation of about 46%.<\/p>\n

Cedi lost 9% value to dollar in only a week<\/strong><\/p>\n

The Ghana cedi lost 9.03% in value to the US dollar last week (October 10-October 14, 2022).<\/p>\n

This came after the investment market reacted to the September 2022 inflation (37.2%).<\/p>\n

The cedi also lost 5.15% and 6.87% in value to the pound and the euro respectively.<\/p>\n

<\/figcaption><\/figure>\n

1 dollar now goes for \u00a212.45<\/strong><\/p>\n

The cedi sold at \u00a212.45 to the US dollar at the forex bureaus or the retail market on Monday October 17, 2022.<\/p>\n

This translated into 2.8% depreciation of the local currency to the world\u2019s most powerful currency, just in a single day. It has since been losing value rapidly to the dollar.<\/p>\n

At the same time, the other major foreign currencies \u2013 the pound and the euro also appreciated in value to the cedi.<\/p>\n

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Ghana\u2019s Gross International Reserves declined to 2.9 months of import cover<\/strong><\/p>\n

The stock of Ghana\u2019s Gross International Reserves declined to $6.6 billion, equivalent to
2.9 months of import cover for goods and services in September 2022.<\/p>\n

This is compared with the December 2021 position of $9.7 billion, equivalent to 4.3 months of import
cover.<\/p>\n

Net International Reserves, which excluded encumbered assets and petroleum funds, was estimated at US$2.7 billion as at September 2022.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The fast depreciation of the Ghana cedi continues with no end in sight as the local currency nears \u00a213 to a dollar. This is more than 6% depreciation in only three days of the week (October 17-19). It may hit \u00a213 by the close of the day, based on how trading is going in the […]<\/p>\n","protected":false},"author":1,"featured_media":1219230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[672,5411,2129,153,3827],"class_list":{"0":"post-1229209","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-cedi","9":"tag-continues","10":"tag-depreciation","11":"tag-fast","12":"tag-nears"},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1229209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1229209"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1229209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1229209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1229209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1229209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}