Local currency crosses ¢10 to one dollar mark on retail market
The local currency has crossed the ¢10 to one dollar mark on the retail market.
A visit by Citi Business News to some forex bureau and banks within the capital shows that some are selling a dollar for GH¢9.98 whilst others are selling it for GH¢10.10.
According to some of the forex bureau operators, there is also a shortage of the dollar on the market.
Data from the Bank of Ghana indicates that the Ghana Cedi has lost more than 25 percent of its value year to date.
The deterioration of the local currency on the financial market is largely due to, among other things, the uncertainty about Ghana’s fiscal outlook as well as low investor confidence that has made it impossible for the country to access the international capital market for borrowing.
The situation also comes after the Bank of Ghana announced an increase in the monetary policy rate by 300 basis points.
This intervention, according to the Central Bank, is part of efforts at taming the soaring inflation and the fast-depreciating local currency.
Reacting to this situation, Economist, Courage Boti stated that it will take some time for the interventions to materialize.
It is still a matter of demand and supply. For over eight to nine weeks now, the Bank of Ghana has not done any spot market interventions. These are also residual demands on the market that are driving the rate higher. Until that backlog is cleared, some of these issues will linger.”