The Head of the Economics Department of the University for Development Studies, Dr. Micheal Ayamga has disclosed that currency traders along the borders of neighbouring countries are running away from trading in the Ghanaian cedi due to its current instability on the international trading markets.
Mr. Adongo said the currency traders who previously ran after holders of the Ghanaian cedi in exchange for CFA are now running away from their once preferred currency due to its depreciation in recent times.
“The cedi has depreciated over 20% in just one week against the dollar. The guys that trade in currency are now running away from dealing in the Ghanaian cedi. They prefer that holders of the cedi rather change it to dollar and then bring it to them for the CFA. The reason is that our currency is not stable. The value of the cedi can change in hours, say from morning to evening so the guys don’t want to take our money and give us CFA.
Dr. Ayamga said the rapid fall of the cedi is having a toe on business because it is affecting their purchasing power.
“Assuming that you are a trader that travels to buy goods to come and sell at Gh10.00 last week, the depreciation of the cedi by 20% this week means that the value of your money has reduced from Gh10.00 to Gh0.80 which means you cannot buy the same quantity of goods again with the same amount of money. “
Dr. Micheal told the host of the Word Community Watch Show, Mr. Simon Agana, that the value of the cedi is even worse in black market.
” Even the value of the cedi is worse in the black market. The cedi is selling at Gh10.00″
The Ghana cedi is trading at Gh9.64 at the Forex Bureaus as at 11th August, 2022, making it one of the worst performing currencies in the world.
S&P and Fitch have in the last two weeks downgraded the local currency to grade CCC/C and placed it in the grade of junk.
The economists feared that government might find it difficult to even pay salaries or service our debt due to it nothing drastic is not done to salvage the challenges faced by the economy.
Many economists including former president John Dramani Mahama have called on the Finance Minister to resign or be fired by the president. The president has however called the bluff of those calls, describing them as calls from members of the NDC who wants to destabilise his government or job seekers.
By: Simon Agana Blessing/mywordfmonline.com